You have receivable in Brazil due in six months, what factors would you use to decide whether to hedge the currency risk? The Brazilian Real (BRL) spot rate is trades at BRL5.40 per US dollar. The 6-month non- deliverable forward exchange rate is BRL5.42, so what would your net gain or loss on the forward be if spot remains at BRL5.40? In this event, if the forward hedge was short 10 million BRL how would the position be settled at maturity (e.g., who gives what to whom?) The US 6-month onshore annualized deposit rate is 0.70% so what Brazilian 6-month rate is implied by the level of the 6M forward? Would you expect the onshore rate to be higher of lower than the offshore implied rate? Why? You have receivable in Brazil due in six months, what factors would you use to decide whether to hedge the currency risk? The Brazilian Real (BRL) spot rate is trades at BRL5.40 per US dollar. The 6-month non- deliverable forward exchange rate is BRL5.42, so what would your net gain or loss on the forward be if spot remains at BRL5.40? In this event, if the forward hedge was short 10 million BRL how would the position be settled at maturity (e.g., who gives what to whom?) The US 6-month onshore annualized deposit rate is 0.70% so what Brazilian 6-month rate is implied by the level of the 6M forward? Would you expect the onshore rate to be higher of lower than the offshore implied rate? Why