FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698
FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698

Solutions

Chapter 7, Problem 28QA
Textbook Problem

Interpreting a Large Forward Discount The interest rate in Indonesia is commonly higher than the interest rate in the United States, which reflects a high expected rate of inflation there. Why should Nike’s Indonesia-based division consider hedging its future remittances from that country to the U.S. parent even when the forward discount on the currency (rupiah) is so large?

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