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Porsche AG in Germany has sent you a confirmation for a large order worth 100 million for seat-belts for the 911 luxury sports car. The
Porsche AG in Germany has sent you a confirmation for a large order worth 100 million for seat-belts for the 911 luxury sports car. The terms are: Down: 30 Million 30 Day Payment: 35 Million 60 Day Payment: 35 Million Payment will be made in Euros. The Spot and Forward rates are: Spot: $1.3635/30 Day: $1.3555/60 day: $1.3450/The opportunity cost is: 6%. 30 Day interest for borrowing is: 4%. For 60 Days: 5%. American Put Option contracts are: 30 day contract at strike price of $1.3650/with the premium at: 0.2 cents per Euro. The 60 day Put Option contract has a strike price of $ 1.3545/with a premium of 0.3 cents per. Which hedging method would you use and why? Porsche AG in Germany has sent you a confirmation for a large order worth 100 million for seat-belts for the 911 luxury sports car. The terms are: Down: 30 Million 30 Day Payment: 35 Million 60 Day Payment: 35 Million Payment will be made in Euros. The Spot and Forward rates are: Spot: $1.3635/30 Day: $1.3555/60 day: $1.3450/The opportunity cost is: 6%. 30 Day interest for borrowing is: 4%. For 60 Days: 5%. American Put Option contracts are: 30 day contract at strike price of $1.3650/with the premium at: 0.2 cents per Euro. The 60 day Put Option contract has a strike price of $ 1.3545/with a premium of 0.3 cents per. Which hedging method would you use and why
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