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this is a section b question
the question goes like this
What is the cost in six months’ time of a money market hedge (to the nearest whole
i dont understand as to why they did not subtract the payment 300000 from the receipts of 500000 in order to calculate the cost in six months time?
They are in different currencies. The 500,000 is in dollars and given that the home currency is dollars they do not need to hedge the receipt. They only need to hedge the euro payment.