arks People Tab Window Help chapter 10 advanced problem x C Chronos Time Pieces Chronos X G how to remove space on goox + ECESARDFOXG35vimxmrUeQRILBb7FM4/edit Problem 10.11 Chronos Time Pieces Chronos Time Pieces of Boston exports Watches to many countries, selling in local currencies to stores and distributors. Chronos prides itself on being financially conservative. At least 70% of cach individual transaction exposure is hedged, mostly in the forward market, but occasionally with options. Chronos's foreign exchange policy is such that the 70% hedge may be increased up to a 120% hedge if devaluation or depreciation appears imminent. Chronos has just shipped to its major North American distributor. It has issued a 90-day invoice to its buyer for 1,560,000. The current spot rate is $1.2224 , the 90-day forward rate is $1.2270. Chronos's treasurer, Manny Hemander, has a very good track record in predicting exchange rate movements. He currently believes the curo will weaken against the dollar in the coming 90 to 120 days. possibly to around $1.16. 1. Evaluate the hedging alternatives for Chronos if Manny is right (Case 1: 51.16) and if Manny is wrong (Case 2:51.26 ). What do you recommend b. What does it mean to hedge 120% of a transaction exposure! c. What would be considered the most conservative transaction exposure management policy by a firm? How does Chronos compare w.anal...pdf 5.145 13 MacBook Pro arks People Tab Window Help chapter 10 advanced problem x C Chronos Time Pieces Chronos X G how to remove space on goox + ECESARDFOXG35vimxmrUeQRILBb7FM4/edit Problem 10.11 Chronos Time Pieces Chronos Time Pieces of Boston exports Watches to many countries, selling in local currencies to stores and distributors. Chronos prides itself on being financially conservative. At least 70% of cach individual transaction exposure is hedged, mostly in the forward market, but occasionally with options. Chronos's foreign exchange policy is such that the 70% hedge may be increased up to a 120% hedge if devaluation or depreciation appears imminent. Chronos has just shipped to its major North American distributor. It has issued a 90-day invoice to its buyer for 1,560,000. The current spot rate is $1.2224 , the 90-day forward rate is $1.2270. Chronos's treasurer, Manny Hemander, has a very good track record in predicting exchange rate movements. He currently believes the curo will weaken against the dollar in the coming 90 to 120 days. possibly to around $1.16. 1. Evaluate the hedging alternatives for Chronos if Manny is right (Case 1: 51.16) and if Manny is wrong (Case 2:51.26 ). What do you recommend b. What does it mean to hedge 120% of a transaction exposure! c. What would be considered the most conservative transaction exposure management policy by a firm? How does Chronos compare w.anal...pdf 5.145 13 MacBook Pro