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Current spot rate ($/) $1.4155 Credit Suisse 90-day forward rate ($/) $1.4187 Barclays 90-day forward rate ($/) $1.4193 Mattel Toys WACC ($) 10.143% 90-day eurodollar interest rate 4.284% 90-day euro interest rate 3.762% 90-day eurodollar borrowing rate 5.231% 90-day euro borrowing rate 5.279% Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Mattel Toys. 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, 32 million, is due in 90 days, standard terms for the toy industry in Europe. Mattel's treasury team has collected the following currency and market quotes in the popup window: . The company's foreign exchange advisors believe the euro will be at about $1.4208/ in 90 days. Mattel's management does not use currency options in currency risk management activities. Assume a 360-day financial year. a. How much in U.S. dollars will Mattel receive in 90 days without a hedge if the expected spot rate in 90 days is the same as the current spot rate of $1.4155/? The Credit Suisse forward rate of $1.4187/? The Barclays forward rate of $1.4193/ ? The expected spot rate of $1.4208/? b. How much in U.S. dollars will Mattel receive in 90 days if the accounts receivable is covered by the Credit Suisse 90-day forward contract? The Barclays 90-day forward contract? c. How much in U.S. dollars will Mattel receive in 90 days with a money market hedge? d. Advise Mattel on which hedging alternative is probably preferable. How much in U.S. dollars will Mattel receive in 90 days without a hedge if the expected spot rate in 90 days is the same as the expected spot rate of $1.4208/? $45465600 (Round to the nearest dollar.) b. How much in U.S. dollars will Mattel receive in 90 days if the accounts receivable is covered by the Credit Suisse 90-day forward contract? $ 45398400 (Round to the nearest dollar.) How much in U.S. dollars will Mattel receive in 90 days if the accounts receivable is covered by the Barclays 90-day forward contract? $ 45417600 (Round to the nearest dollar.) c. How much in U.S. dollars will Mattel receive in 90 days with a money market hedge? $ (Round to the nearest dollar.)

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