Question
You (US firm) have accounts receivables (ARs) of SF 1,000,000 in 90 days. Given S t of $0.6500 $0.6530 / SF SF interest rate of
You (US firm) have accounts receivables (ARs) of SF 1,000,000 in 90 days.
Given St of $0.6500 $0.6530 / SF
SF interest rate of 6% - 6.4% p.a. (find for 90 days) and
US interest rate of 8.4% - 8.8% p.a. (find for 90 days).
What are your receivables in dollars if you hedge using money market hedging? Instead of ARs, if the firm had accounts payables (APs) in Swiss Francs, what are your payables in dollars if you hedge using money market hedging?
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Handbook Of Key Global Financial Markets Institutions And Infrastructure
Authors: Gerard Caprio
1st Edition
0123978734, 9780123978738
