PT Gas Co is a large multinational company in the UK with a number of...
80.2K
Verified Solution
Link Copied!
Question
Accounting
PT Gas Co is a large multinational company in the UK with a number of subsidiary companies around the world. One of the subsidiary is Laxamana Co which is based in US. PT Gas Co is owing to Laxamana Co amounted to US$2.4 million. PT Gas Co want to hedge against the USD strengthening against the because if the depreciates against the USD, then the PT Gas Co has to spend more to buy the USD later at the end of 3 months.
Other information available are:
1. Current exchange rate (US$/1): Spot 5962
3-month futures 1.6037
2. Contract size 62,500
3. In 90 days time the spot is 1.6213 $/
4. Assume that the basis is zero at the maturity of the futures contract
Prepare your answers in an infographic format for the following
- Explain on how to mitigate the risk using currency futures and currency options.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.