Your firm is an Italian importer of bicycles. You have placed an order with a Swiss firm for SFr. 2,000,000 worth of bicycles. Payment (in francs) is due in 12 months. Use a money market hedge to redenominate this one-year franc denominated payable into a euro-denominated payable with a one-year maturity. The following were computed without rounding. Select the answer closest to yours.

Question

Your firm is an Italian importer of bicycles. You have placed an order with a Swiss firm for SFr. 2,000,000 worth of bicycles. Payment (in francs) is due in 12 months. Use a money market hedge to redenominate this one-year franc denominated payable into a euro-denominated payable with a one-year maturity.  The following were computed without rounding. Select the answer closest to yours.

Quizplus · Accepted Answer

The Answer of Your firm is an Italian importer of bicycles. You have placed an order with a Swiss firm for SFr. 2,000,000 worth of bicycles. Payment (in francs) is due in 12 months. Use a money market hedge to redenominate this one-year franc denominated payable into a euro-denominated payable with a one-year maturity.  The following were computed without rounding. Select the answer closest to yours.

Your Firm Is an Italian Importer of Bicycles