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the company wishes to protect the dollar value of this receivable. a. What are the costs and benefits of alternative hedges? Which would you recommend,
the company wishes to protect the dollar value of this receivable. a. What are the costs and benefits of alternative hedges? Which would you recommend, and why? b. What is the break-even reinvestment rate when comparing forward and money market alternatives? a. How much in U.S. dollars will Krystal receive in 3 months without a hedge if the expected spot rate in 3 months is assumed to be 117.752/$? (Round to the nearest cent.) the company wishes to protect the dollar value of this receivable. a. What are the costs and benefits of alternative hedges? Which would you recommend, and why? b. What is the break-even reinvestment rate when comparing forward and money market alternatives? a. How much in U.S. dollars will Krystal receive in 3 months without a hedge if the expected spot rate in 3 months is assumed to be 117.752/$? (Round to the nearest cent.)
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