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Question 1 Your company has a 1 million Euro receivable in one year. You decided to fully hedge with forward contracts. The one year forward
Question
Your company has a million Euro receivable in one year. You decided to fully hedge with forward contracts.
The one year forward rate is USDEUR
How much will you receive in USD in one year?
Note: provide your answers with four decimal points and in millions of USD. Please do the calculations in Excel and round up the results to four decimal points only at the end, once the calculations are completed.
Question
Your company has a million Brazilian real BRL payable in one year. You decided to fully hedge with forward contracts.
The one year forward rate is BRLUSD
How much will you pay in USD in one year?
Note: provide your answers with four decimal points and in millions of USD. Please do the calculations in Excel and round up the results to four decimal points only at the end, once the calculations are completed.
Question
Your company will receive million South African Rand ZAR in months. You decided to fully hedge with forward contracts.
The month forward rate is ZARUSD
How much will you receive in USD in three months?
Note: provide your answers with four decimal points and in millions of USD. Please do the calculations in Excel and round up the results to four decimal points only at the end, once the calculations are completed.
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