XMN is a multinational company. The company Intend to borrow $50 mil in 3 month for 6

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XMN is a multinational company. The company Intend to borrow $50 mil in 3 month for 6 month. The company is considering to enter to FRA. The economy is doing very well Three month later the settlement rate Become 2.5%

Borrowing.	Deposit
3 month 0.75	0.7
6 month 0.85	0.8
9 month 0.95	0.9
12 month. 1.05	1

A. According to the economy do you think the rate is likely to increase or decrease?

B. Do you think XMN make the right choice?

C. According to FRA agreement, how much would be the gain or the loss for the company

Related Book For answer-question

Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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Posted Date: Oct 19, 2023 12:54 AM

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XMN is a multinational company. The company Intend to borrow $50 mil in 3 month for 6

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Operations Management Managing Global Supply Chains

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