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K-Roo Ltd.'s US subsidiary is expecting to receive AUD 8453 in 4 months from sales to an Australian customer. K-Roo wants to use a
K-Roo Ltd.'s US subsidiary is expecting to receive AUD 8453 in 4 months from sales to an Australian customer. K-Roo wants to use a money market hedge to lock in the USD value of the receivable. It observes the following interest and exchange rates: Annualized US 4-month interest rates: 3.9% -3.7% Annualized Australian 4-month interest rates: 6.9%-6.8% Spot USD/AUD rate: USD2.1/AUD. What is the USD value of this receivable using a money market hedge? a. 17938.3404 b. 17566.2099 c. 17926.5349 d. 4067.6509 e. 8364.8618
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Venture capital and the finance of innovation
Authors: Andrew Metrick
2nd Edition
9781118137888, 470454709, 1118137884, 978-0470454701
