Question
MONEY MARKET HEDGE. Euro amount after 6 months. (not just simple Euro to USD conversion. Need interest calculated. Sale Price: $460,000,000 (payable in 6 months)
MONEY MARKET HEDGE. Euro amount after 6 months. (not just simple Euro to USD conversion. Need interest calculated.
Sale Price: $460,000,000 (payable in 6 months) Spot Exchange: $1.1915 Six Month Forward: $1.1963 Six Month LIBOR Rate: -0.54800% Eurodollar: .22600%
Future Spot Exchange Rate
| Spot Rate Change Scenario | Probability | New Spot Rate | 6 Month Return |
| -10% | 1/7 | $1.07235 | |
| -5% | 1/7 | $1.131925 | |
| -1% | 1/7 | $1.179585 | |
| 0% | 1/7 | $1.1915 | |
| 1% | 1/7 | $1.203415 | |
| 5% | 1/7 | $1.251075 | |
| 10% | 1/7 | $1.31065 |
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Your Financial Future How To Take Control Of Your Financial Future
Authors: Deloris Lutke
1st Edition
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