Question
XYZ company in U.S. has an account payable (A/P) in the amount of 8,000,000 due in 180 days. Given the information below, if XYZ adopts
XYZ company in U.S. has an account payable (A/P) in the amount of 8,000,000 due in 180 days. Given the information below, if XYZ adopts the money market hedge, it needs to __________. - Spot rate (/$) = 120.00 - 180 day forward rate (/$) = 117.50 - $ investment/lending rate = 9.00% - $ borrowing rate = 10.00% - investment/lending rate = 5.00% - borrowing rate = 6.00%.
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Finance For Growing Enterprises
Authors: Edward W. Davis, Roger Buckland
1st Edition
1138679941, 978-1138679948
