Money market hedge

For a foreign-currency payment, deposit enough foreign currency now to grow to the required amount, financing its purchase as appropriate. For a receipt, borrow the present value of the foreign receipt now, convert the borrowing proceeds and use the later receipt to repay the foreign loan. Use the correct borrowing and deposit rates for each currency, the actual period and the appropriate spot side. Compare the resulting home-currency amount at the same date as alternatives. The hedge changes cash and borrowing needs immediately and depends on the underlying receipt or payment occurring.