Question
XYZ Company has an account receivable of 13,895,200 due on Friday, October 30, 2020. You are concerned with the potential depreciation of (euro) value vs.
XYZ Company has an account receivable of 13,895,200 due on Friday, October 30, 2020. You are concerned with the potential depreciation of (euro) value vs. $ and want to hedge the position. Your firm always consider the following hedging strategies to manage the FX exposure:
- 100% hedging with forward contract
- forward rate: $1.1739
Calculate total US$ cash inflow?
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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
