Tyson Inc. wants to hedge an account receivable of ¥595 million to be received in six months using a money market hedge. Given a yen borrowing rate of 6% APR and a spot exchange rate of ¥119/$ how much is the yen denominated loan Tyson Inc. will need to borrow today worth when converted into dollars? Question 6 options: $4,926,108 $4,716,981 $5,000,000 $4,854,369
Tyson Inc. wants to hedge an account receivable of ¥595 million to be received in six months using a money market hedge. Given a yen borrowing rate of 6% APR and a spot exchange rate of ¥119/$ how much is the yen denominated loan Tyson Inc. will need to borrow today worth when converted into dollars? Question 6 options: $4,926,108 $4,716,981 $5,000,000 $4,854,369
Chapter11: Managing Transaction Exposure
Section: Chapter Questions
Problem 33QA
Related questions
Question
Tyson Inc. wants to hedge an account receivable of ¥595 million to be received in six months using a
Question 6 options:
|
$4,926,108 |
|
$4,716,981 |
|
$5,000,000 |
|
$4,854,369 |
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