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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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