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12 Question 13 (3 points) Shrewsbury Herbal is an old-line producer of herbal teas, seasonings,...

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12 Question 13 (3 points) Shrewsbury Herbal is an old-line producer of herbal teas, seasonings, and medicines. Shrewsbury Herbal receives a large order today (February 17, 2021), and this time it's from a wholesaler in California, U.S. for $1,500,000. This U.S. wholesaler demands that the order be invoiced in their home currency (ie the U.S. dollar) and that delivery be made by the end of May 2021 Mr. Peters approaches you for financial advice. You have just leamed how to use currency futures in hedging exchange rate exposure. So you advice Mr. Peters how to hodge its dollar position by entering into IMM tutures contracts. The spot rate is 167/8 and the June future price is $1.72/4. The size of a tutures contract is 162.500 4. State a hedging strategy using futures contracts b. On May 31, 2021 the spot rate turns out to be 51.70%, while the June futures price is $1.75/. Calculate Shrewsbury Herbal's net gain or loss on its futures position. What is Shrewsbury Herbal's total net revenue for the receivables

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