Question
Your small multinational US export business has a forecast of generating 40,000 Euro in revenue in 6 months from sales of NY bagels to European
Your small multinational US export business has a forecast of generating 40,000 Euro in revenue in 6 months from sales of NY bagels to European customers. The 6 month EUR forward rate is 1.21. You hedge 100% of the exposure using a forward contract. If the actual exchange rate in 6 months is 1.39, then what is the US dollar gain or loss on your exposure within your business plan?
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COMMENT INVESTIR ABC DE LA FINANCE
Authors: OLIVIER CHAZOULE
1st Edition
2020367521, 978-2020367523
