Your company will receive 1,250,000 in four months. When you calculate that the break-even...
90.2K
Verified Solution
Link Copied!
Question
Finance
Your company will receive 1,250,000 in four months. When you calculate that the break-even interest rate that makes you indifferent between money market hedge and forward contract (forward hedge) you find that it is 3%. If the interest rate is 3.5%, then forward contract (forward hedge) is more profitable for you than the money market hedge.
True
False
A US company needs to pay 750,000 to a British company in UK 6 months later. If this US company chooses the option hedge then the company needs to be a buyer of a put option.
True
False
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.