Question: This is finance question. show workings Creane Ltd is based in England and has imported goods from USA which have been invoiced for US Dollars

This is finance question. show workings Creane Ltd is based in

This is finance question. show workings

Creane Ltd is based in England and has imported goods from USA which have been invoiced for US Dollars 260, as payable in 3 months time. In addition, it has also exported finished goods to Singapore and Australia. The Singapore Customer has been invoiced in US Dollas (USD) 300 payable in four months time. Current spot and forward rates are as follows: Spot 3 months forward Q.8870 -0.8895 28560 -0.8570 Sterling pound/USD he Spot 4 months forward 17850-1.7961 1.8220-1.8270 Current money market rates (Per annum) are as follows: USD ASD Sterling pound 12%-14% 14%-16% 10%-12% Required Explain how the company can head its exposure to foreign exchange risk using: Forward markets (5 marks) ii. Money markets

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