T The Treasury Manager of G.E. receives word that a payment in the amount of 50,000,000...
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T The Treasury Manager of G.E. receives word that a payment in the amount of 50,000,000 to Hitachi will be due in June 2020. Hitachi requires the payment to be made in Japanese Yen ). The Treasury Manager decides to hedge this exposure using Futures contracts. The following quotes are available from CME at this time. Japanese Yen (CME) - 12,500,000; S/V Open High Low Settle Change Open Interest March June 1.0994 1.0994 1.0828 1.0849 -0.0114 127,331 1.0996 1.1008 1.0846 1.0866 -0.0114 5,904 In order to hedge against the possibility of an appreciation in OA The Treasury Manager will need to enter into a SHORT position in 4 June Yen Futures contracts. OB. The Treasury Manager will need to enter into a SHORT position in 4 March Yen Futures contracts. OC The Treasury Manager will need to enter into a LONG position in 4 June Yen Futures contracts. OD. The Treasury Manager will need to enter into a LONG position in 4 March Yen Futures contracts. T The Treasury Manager of G.E. receives word that a payment in the amount of 50,000,000 to Hitachi will be due in June 2020. Hitachi requires the payment to be made in Japanese Yen ). The Treasury Manager decides to hedge this exposure using Futures contracts. The following quotes are available from CME at this time. Japanese Yen (CME) - 12,500,000; S/V Open High Low Settle Change Open Interest March June 1.0994 1.0994 1.0828 1.0849 -0.0114 127,331 1.0996 1.1008 1.0846 1.0866 -0.0114 5,904 In order to hedge against the possibility of an appreciation in OA The Treasury Manager will need to enter into a SHORT position in 4 June Yen Futures contracts. OB. The Treasury Manager will need to enter into a SHORT position in 4 March Yen Futures contracts. OC The Treasury Manager will need to enter into a LONG position in 4 June Yen Futures contracts. OD. The Treasury Manager will need to enter into a LONG position in 4 March Yen Futures contracts.
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