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Please help. I need the answer asap 3 Assignment - Step 3 of Project Steps 3 Take the results from Step 1 & 2 and
Please help. I need the answer asap
3 Assignment - Step 3 of Project Steps 3 Take the results from Step 1 & 2 and start to monitor your positions in the market. Part A Hedging - Now that you know what your underlying is and what you want to hedge, create a spreadsheet and monitor the mark-to-market (MTM). You can use historical prices or just start from today and monitor every day going forward. It should look something like this: Wine importer has a Euro 1MM payable in one year for wine Forward Hedge Executed Bought Euros MTM of Forward Underlying Exposre Net MTM MTM of Payable 1 Year Forward Short Euros 2/20/2019 2/21/2019 2/22/2019 2/23/2019 1,000,000 $ $ $ $ 1.1710 1,000,000 $ $ (9,000) $ 1.1800 9,000 $ $ (21,000) $ 21,000 1.1500 (529,000) $ 529,000 1,7000 2/24/2019 2/25/2019 2/26/2019 2/27/2019 You should monitor these positions for at least 10 business days. 3 Assignment - Step 3 of Project Steps 3 Take the results from Step 1 & 2 and start to monitor your positions in the market. Part A Hedging - Now that you know what your underlying is and what you want to hedge, create a spreadsheet and monitor the mark-to-market (MTM). You can use historical prices or just start from today and monitor every day going forward. It should look something like this: Wine importer has a Euro 1MM payable in one year for wine Forward Hedge Executed Bought Euros MTM of Forward Underlying Exposre Net MTM MTM of Payable 1 Year Forward Short Euros 2/20/2019 2/21/2019 2/22/2019 2/23/2019 1,000,000 $ $ $ $ 1.1710 1,000,000 $ $ (9,000) $ 1.1800 9,000 $ $ (21,000) $ 21,000 1.1500 (529,000) $ 529,000 1,7000 2/24/2019 2/25/2019 2/26/2019 2/27/2019 You should monitor these positions for at least 10 business daysStep by Step Solution
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