If you expect to receive 500 million Euros next year, what would be your expected cash flow

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If you expect to receive 500 million Euros next year, what would be your expected cash flow if you hedge using forwards?

What would it be if you don't hedge, but convert it at the final spot rate?

Related Book For answer-question

Basic Finance An Introduction to Financial Institutions Investments and Management

ISBN: 978-1111820633

10th edition

Authors: Herbert B. Mayo

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Posted Date: May 02, 2023 04:18 AM

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If you expect to receive 500 million Euros next year, what would be your expected cash flow

Question:

Expert Answer:

To determine the expected cash flow using forwards for hedging and the expected cash flow without hedging we need to consider the forward exchange rat... View the full answer

Basic Finance An Introduction to Financial Institutions Investments and Management

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