You work at the Treasury Department of XYZ Corporation ). You oversee XYZs FX risk management. XYZ has an account receivable of 20,600,500 due on Friday, July 13, 2018. You are concerned with the potential depreciation of value vs. $ and want to hedge the position. You always consider the following hedging strategies to manage the FX exposure: Forward Futures (CME) Options (Philadelphia Stock Exchange) Combination of forwarding and Options Assignment Calculate total US$ cash inflow from five hedging strategies and from No hedging strategy. Spot rate = 1.1701

Information Collected: Euro Futures: Opening and Settlement Prices: July 9, 2018 July 13, 2108, Complete

1.July 9, 2018: Opening 1.17535; Settlement: 1.17540

2.July 10, 2018: Opening: 1.17625; Settlement: 1.17500 = -.0004

3. July 11, 2018: Opening 1.17320; Settlement: 1.16770 = - .0073

4. July 12, 2018: Opening 1.16755; Settlement: 1.16725 = - .0045

5. July 13, 2018: Opening 1.16645; Settlement: 1.16780 = +.00055

The difference for the week: - .0076 down

Lot size: The EURO amount = 20,600,500, or the US Dollar amount = $24,104,645