Now assume that there are two possibilities to hedge against exchange rate risk. 1t Option is based.
Now assume that there are two possibilities to hedge against exchange rate risk. 1t Option is based on money market hedge: e.g. the company borrows certain amount of home currency, converts it into pesos and this way hedges against exchange rate risk 2nd Option is based on forward hedge: e.g. the company buys a forward contract today to hedge against exchange rate risk. b) Your task is to find, which alternative has cheapest cost in terms of dollars 6-months from now (e.g. when interest payment in pesos is made)? Apr 08 2022 02:04 PM
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