Estimate the revenue for hedge


Hedging Decision on Receivables

Response to the following problem:

Assume the following information:

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Assume that Riverside Corp. from the United States will receive 400,000 pounds in 180 days. Would it be better-off using a forward hedge or a money market hedge? Substantiate your answer with estimated revenue for each type of hedge.

 

 

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Financial Accounting: Estimate the revenue for hedge
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