Elaborate on the main points that are expected to be included in the presentation.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter22: International Financial Management
Section: Chapter Questions
Problem 7P
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The Corporate Treasurer of LetsDoIt Ltd, a company based in Mexico plans to borrow MXN 500 million pesos in 3 months’ time for a period of 3 months at the base rate plus 50 basis points. A lot of speculation is going on regarding a potential change in the government and interest rates have since been quite volatile.
The Corporate Treasurer had recently attended a professional workshop on interest rate risk management where he had learnt about interest rate collars and interest rate guarantees, among others. He has been requested by the Board of Directors to make a presentation on the two financial instruments. Elaborate on the main points that are expected to be included in the presentation.

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