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Question 1 (20 Marks) Menning Organic Foods of Texas is completing a new assembly plant new Guatemala City. A final constuction payment of Q8,400.000 is

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Question 1 (20 Marks) Menning Organic Foods of Texas is completing a new assembly plant new Guatemala City. A final constuction payment of Q8,400.000 is due in six-months. ("Q" is the symbol for Guatemalan quetzals). Today foreign exchange and interest rate quotations are as follows: Menning's treasury and finance manager. concerned about the Guatemalan economy, wonders if Mennning should be hedging in foreign exchange risk: What realistic alternatives avallable to Menning for making payments? Which method would you select and why? Question 1 (20 Marks) Menning Organic Foods of Texas is completing a new assembly plant new Guatemala City. A final constuction payment of Q8,400.000 is due in six-months. ("Q" is the symbol for Guatemalan quetzals). Today foreign exchange and interest rate quotations are as follows: Menning's treasury and finance manager. concerned about the Guatemalan economy, wonders if Mennning should be hedging in foreign exchange risk: What realistic alternatives avallable to Menning for making payments? Which method would you select and why

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