Hedging December 2005

The figures that you The question says how many dollars each company in the group will receive. MJY will receive $90 from Co1 and $50 from Subsidiary 2 Subsidiary 1 will receive $40 from Co 3 and $20 from Co 4 Subsidiary 2 will receive $30 from Co 4 Total $230 It also says in the question how many dollars each company in the group will pay. MJY will pay $170 to Co 2 MJY will pay $120 to Co 3 Subsidiary 2 will pay $50 to MJY. Total $340 So the net total is a payment of $340 - $230 = $110 You could, of course, ignore the $50 going from Subsidiary 2 to MJY from both, because it is within the group. The net payment outside of the group would not change. The Euro amount is calculated in exactly the same way - how many €'s the group companies will receive, less how many €'s the group company will pay.

thank you sir

You are welcome :-)