us company owes European company 3.5m euoro due to be paid in 3 months time the spot exchange rate is $1.96-$2:1euoro currently,annual intrest rates are
BORROWING DEPOSIT
US 8% 3%
EUORUPE 5% 1%
WHAT WILL BE THE EQUILVENT US $ value of payment using money market hedge?
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bpp kit MCq foreign currency risk
11y ago#1You have the answer in the BPP Revision Kit - I do not understand therefore why you are telling me to answer it.
If you say which bit of the answer is causing you a problem then I will try and help.
(I assume that you have watched the free lecture on money market hedging?)
my problem is in the part of conversion of foreign currency into local currency ??? iam not understanding this part ?? please help me
11y ago#3You will have to watch the lecture on this - I go through in detail in the lecture.
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