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12 Review Later A European client that was due to paying JPY 20 million held a forward contract to hedge a JPY 20 million contract,
12 Review Later A European client that was due to paying JPY 20 million held a forward contract to hedge a JPY 20 million contract, which has been delayed by one year. The client decided to enter into an FX swap to roll forward the position The EURJPY rate on the original FX forward expiry date was 119.30. The forward rate in one year is 119.10. The interest rate in Europe is 0.50% while the interest rate in Japan is 0.25%. Calculate the total benefit or cost of this FX swap. 137.59 137.59 138.30 - 138.30
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