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The Australian Dollar ( A$ ) 6 - month borrowing rate is 7 . 5 0 % per annum and the Australian Dollar ( A$
The Australian Dollar A$month borrowing rate is per annum and the Australian Dollar A$month investment rate is per annum.
The Euro month borrowing rate is per annum and the Euro month investment rate is per annum.
An Australian company is expecting to use money market hedging both for its account payables and account receivables.
The current spot rate is A$
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Determine the cost for money market hedging for a cash flow of million due to a supplier in months, and the proceed for money market hedging for a cash flow of million due from a customer in months.
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