Solved: How would the treasurer hedge the company risk exposure, Finance Basics

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How would the treasurer hedge the company risk exposure

Question:

If it is Feb. 20th and the treasurer realizes that on July 17 the company will have to issue $5 million of commercial paper with 180 day maturity. If the paper were issued today, the company would receive $4.82 million. In 180 days, the company will have to redeem the commercial paper for $5 million. The September Eurodollars future price is quoted as 92.00. How would the treasurer hedge the company's risk exposure?

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Finance Basics: How would the treasurer hedge the company risk exposure

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Finance Basics: How would the treasurer hedge the company risk exposure

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