Question
In 180 days, a company expects a Mexican peso payable of p10,000,000. The 180-day forward rate is $0.1500/peso and the expected peso spot rate in
In 180 days, a company expects a Mexican peso payable of p10,000,000. The 180-day forward rate is $0.1500/peso and the expected peso spot rate in 180 days is $0.1600. If the company chooses to hedge, what should they do and how much would they pay/receive in dollars?
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
