Question
Marcus Pty, a U.S. company, has future receivables of 4,000,000 Australian dollars (AUD) in one year. Spot rate of AUD = USD 0.54 U.S. Australia
Marcus Pty, a U.S. company, has future receivables of 4,000,000 Australian dollars (AUD) in one year.
Spot rate of AUD = USD 0.54
U.S. Australia
Oneyear deposit rate 9% 6%
Oneyear borrowing rate 11% 8%
What is the money market hedge to hedge this position?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
