Question
To hedge a future payment of EUR25M, a U.S. company should A. Buy EUR25M in the spot market to cover the future payment B. Borrow
To hedge a future payment of EUR25M, a U.S. company should
Buy EUR25M in the spot market to cover the future payment
Borrow in $ and save the borrowed money as EUR deposit to cover the future payment
Borrow in EUR and save the borrowed money as $ deposit to cover the future payment
Hard to tell without the information on the interest rates on $ and EUR
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Mathematical Control Theory And Finance
Authors: Andrey Sarychev, Albert Shiryaev, Manuel Guerra, Maria Do Rosário Grossinho
2008th Edition
3540695311, 978-3540695318
