Question: Chapter 11 additional A. Your firm is a U.K.-based importer of bicycles. You have placed an order with an Italian firm for 1,000,000 worth of

Chapter 11 additional

Chapter 11 additional A. Your firm is a U.K.-based importer of bicycles.

A. Your firm is a U.K.-based importer of bicycles. You have placed an order with an Italian firm for 1,000,000 worth of bicycles. Payment (in euro) is due in 12 months. Use the forward hedge and money market hedge to determine the payables in local currency. B. Your firm is a U.K.-based exporter of bicycles. You have sold an order to a Swiss firm for SFr. 1,000,000 worth of bicycles. Payment from the Swiss firm (in Swiss francs) is due in 12 months. Use the forward hedge and money market hedge to determine the receivable in local currency

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