Mattel is a U.S.-based company whose sales are roughly two-thirds in dollars (Asia and the Americas) and one-third in euros (Europe). In September Mattel delivers a large shipment of toys (primarily Barbies and Hot Wheels) to a major distributor in Antwerp. The receivable, 30 million, is due in 90 days, standard terms for the toy industry in Europe. Mattels treasury team has collected the following currency and market quotes. The companys foreign exchange advisors believe the euro will be at about $1.4200/ in 90 days. What are the various hedging options available to Mattel.
Assumptions		Values
90-day A/R ()		30,000,000.00
Current spot rate ($/)		$1.4158
Credit Suisse 90-day forward rate ($/)		$1.4172
Barclays 90-day forward rate ($/)		$1.4195
Expected spot rate in 90 days ($/)		$1.4200
90-day eurodollar interest rate		4.000%
90-day euro interest rate		3.885%
Implied 90-day forward rate (calculated, $/)		$1.4162
90-day eurodollar borrowing rate		5.000%
90-day euro borrowing rate		5.000%
3-month call option on Euro at 1.25% Premium ($/)		$1.4230

3-month put option on Euro at 1.25% Premium ($/) $1.4220