Question: Please help A U.S. based MNC has contracted to sell 250 million electronic chips to a Swedish firm for 25 Krona each. The chips are

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Please help A U.S. based MNC has contracted to sell 250 million

A U.S. based MNC has contracted to sell 250 million electronic chips to a Swedish firm for 25 Krona each. The chips are to be delivered and paid for in 4 months. The current exchange rate between Krona and the $ is $1.00 equals 8.873 Krona. At today's exchange rate how much will the firm be paid for the chips in dollars? In three months, when the chips are delivered and paid for, the exchange rate is $1.00 equals 8.5 Krona. How many dollars will the U.S. firm receive for the chips? Carefully explain how the U.S. firm could use (1) a forward contract for foreign exchange, (2) a futures contract for foreign exchange, and (3) an option contract for foreign exchange to hedge their position to protect their profits for this transaction. A U.S. based MNC has contracted to sell 250 million electronic chips to a Swedish firm for 25 Krona each. The chips are to be delivered and paid for in 4 months. The current exchange rate between Krona and the $ is $1.00 equals 8.873 Krona. At today's exchange rate how much will the firm be paid for the chips in dollars? In three months, when the chips are delivered and paid for, the exchange rate is $1.00 equals 8.5 Krona. How many dollars will the U.S. firm receive for the chips? Carefully explain how the U.S. firm could use (1) a forward contract for foreign exchange, (2) a futures contract for foreign exchange, and (3) an option contract for foreign exchange to hedge their position to protect their profits for this transaction

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