Given that firm X has a payment of 5,000,000,000 USD due in 3 months to their supplier,

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how do you calculate using forward hedge, money market hedge, and option hedging?

(AUD/USD)

Spot Rate = 0.7754

3 Months Forward Rate = 0.7709

Also is the reciprocal on those rates applicable?

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International financial management

ISBN: 978-0324593471

9th Edition

Authors: Jeff Madura

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Posted Date: Aug 24, 2023 03:26 AM

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Given that firm X has a payment of 5,000,000,000 USD due in 3 months to their supplier,

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To calculate how firm X can hedge its payment of 5000000000 USD due in 3 months using forward hedge money market hedge and option hedging we will use ... View the full answer

International financial management

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