Question: Spot rate question help??? Step by step to put in paper please 18. (10pts) Today US based MNC is selling its product to one company
Spot rate question help??? Step by step to put in paper please
18. (10pts) Today US based MNC is selling its product to one company in Germany with the payment of euro 2 million in 90 days. Today's spot rate is $1.30/euro. (3pts) What is the risk factor of US based MNC? (4pts) If 90 days forward rate in euro is $1.34/euro, how the US company avoids the FX risk? (3pts) Does the US company have the forward profit or loss
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