Calculate the expected sterling receipts in three months using a money market hedge and recommend whether a forward market hedge or a money market should be used.
1. answer and show working out with the following maths questions: Assume the following information Quoted price Spot rate of Euro 0.80 USD 90 day forward rate of Euro 0.79 USD 90 day European interest rate 4% 90 day U.S interest rate 2.5 Given the information above, discuss if covered interest arbitrage worthwhile for an […]