At Jan 1st, A US company expects to receive 100mn EUR in 8 months. The September futures

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At Jan 1st, A US company expects to receive 100mn EUR in 8 months. The September futures price is 1.1 (USD per EUR). Suppose the contract is closed out in August when the September price is 1.05 and the spot price is 1

What is the net exchange rate after hedging?
If the hedge had been perfect, what would the net exchange rate have been?

Related Book For answer-question

Advanced Accounting

ISBN: 978-1934319307

2nd edition

Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III

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Posted Date: Sep 10, 2023 08:53 AM

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At Jan 1st, A US company expects to receive 100mn EUR in 8 months. The September futures

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To calculate the net exchange rate after hedging we need to consider the futures contract and spot r... View the full answer

Advanced Accounting

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