Your company is scheduled to receive 2,000,000 euros in 1 year.  The euro is currently trading at 1.0813, you can borrow in the US for 1 year at 5.5% or invest in the US at 5.2%.  You can borrow in euros at 3.6% or invest in euros at 3.3%.  If you use a money market hedge on the receivable, how much will you get in US dollars?

Answer rating: 100% (QA)

Heres how to calculate the amount you would receive in US dollars using a money market hedge Step 1 Convert Euro Receivable to USD Spot Rate Euro rece... View the full answer