Task 2. A Polish company has accounts payables in a month. They amount to 10.000 USD....
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Task 2. A Polish company has accounts payables in a month. They amount to 10.000 USD. The spot rate of 1 USD is 3,06 – 3,11 PLN. Propose a money market hedge if you know that the yearly interest rates for USD are 2% (bid) and 3% (ask) and for PLN 4% (bid) and 5% (ask). Task 2. A Polish company has accounts payables in a month. They amount to 10.000 USD. The spot rate of 1 USD is 3,06 – 3,11 PLN. Propose a money market hedge if you know that the yearly interest rates for USD are 2% (bid) and 3% (ask) and for PLN 4% (bid) and 5% (ask).
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Money market hedge involves Investing an amount in foreign currenc... View the full answer
Related Book For
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris
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