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You (US firm) have accounts receivables (ARs) of SF 1,000,000 in 90 days. Given S t of $0.6500 $0.6530 / SF Swiss 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
- Swiss 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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Measuring Business Interruption Losses And Other Commercial Damages An Economic Approach
Authors: Patrick A. Gaughan
3rd Edition
1119647916, 9781119647911
