ABC Co. expects a payment from an American customer in 30 days. To hedge its currency exposure, ABC Co. should a. Sell dollars forward 30 days. b. Buy dollars forward 30 days. c. Sell pesos forward 30 days. d. Do nothing as there is no foreign exchange rate exposure for a 30 day time horizon.

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Q: 7.ABC Company, a British company, expects to receive $10,000,000 in 30 days. It wants to hedge its…

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Q: am. 117.

A:

Q: want proper answer with explanation

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Q: Give Answer with explanation

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Q: ABC’s payoff on the forward contract is closest to:

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Q: How can Golden Ltd lessen its exposure in the case?

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A: Conclusion:Forward Contract: GBP 2,222,222.22Money Market Hedge: GBP 2,184,002.18Lead Payment: GBP…

Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.