Question: (Use data from Data table #1.) Compute the 60-day forward rate of DKK per 1 USD (DKK/$) using the forward premium. You source Ice Cubes

(Use data from Data table #1.) Compute the 60-day forward rate

(Use data from Data table #1.) Compute the 60-day forward rate of DKK per 1 USD (DKK/$) using the forward premium.

You source Ice Cubes to sell in the US from an Eskimo village and you owe them 4,000,000 Danish Kronas (DKK), which is due in 60 days. If the currency exchange rates and interest rates are as follows (see Data Table \#1), what is your hedging decision? You have to explore each hedging alternative (by answering questions below) and choose the best one

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