Le Tablier Bleu Gourmet Store is a French food importer. It owns Auzzie Food Export Pty Ltd an Australia Company. Le Tablier has a payment of EUR 300,000 due to Auzzie Food Export in three months time. The following information available: Spot exchange rate (AUD/EUR) Three months forward rate (AUD/EUR) Australia three months interest rate French three months interest rate 1.5849-1.5899 1.6049-1.6099 8% p.a. 10% p.a. Calculate the cost of hedging for Auzzie Food Export Pty Ltd using a forward hedging and under money market hedging.

Le Tablier Bleu Gourmet Store is a French food importer. It owns Auzzie Food Export Pty Ltd an Australia Company. Le Tablier has a payment of EUR 300,000 due to Auzzie Food Export in three months time. The following information available: Spot exchange rate (AUD/EUR) Three months forward rate (AUD/EUR) Australia three months interest rate French three months interest rate 1.5849-1.5899 1.6049-1.6099 8% p.a. 10% p.a. Calculate the cost of hedging for Auzzie Food Export Pty Ltd using a forward hedging and under money market hedging.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Please help with the last one in RED X
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