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Wamu Ltd a subsidiary of U.S multinational has a translation exposure of Kshs 20 Million. The rates are as follows; Spot Shs 124.0/ One year

Wamu Ltd a subsidiary of U.S multinational has a translation exposure of Kshs 20 Million. The rates are as follows;

Spot Shs 124.0/

One year forward shs 128.0/

A 6% depreciation of shilling is expected. How can the exchange risk be hedged

Wamu Ltd a subsidiary of U.S multinational has a translation exposure of Kshs 20 Million. The rates are as follows;

Spot Shs 124.0/

One year forward shs 128.0/

A 6% depreciation of shilling is expected. How can the exchange risk be hedged

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