Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Use the following information to calculate the dollar cost of using a money market hedge t...

Use the following information to calculate the dollar cost of using a money market hedge to hedge 209,000 pounds of payables due in 180 days. Assume the firm has no excess cash. Assume the spot rate

Use the following information to calculate the dollar cost of using a money market
hedge to hedge 209,000 pounds of payables due in 180 days. Assume the firm has
no excess cash. Assume the spot rate of the pound is $1.93 and the 180‑day
forward rate is $2.00. The British interest rate is 0.05, and the U.S. interest rate is
0.05 over the 180‑day period.

Jun 23 2021 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions