If a money market hedge is to be used what is the effective, Financial Management

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If a money market hedge is to be used what is the effective

An importer of grain into Germany from the United States has payables due in 90 days. The spot rate is $1.15 per euro. The interest rate in Germany is 2% p. a. and the interest rate in the U. S. is 4% p.a. If a money market hedge is to be used what is the effective forward rate? (The interest rates for 90 days will be 0.5% in Germany and 1% in the U. S.)

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Financial Management: If a money market hedge is to be used what is the effective

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Financial Management: If a money market hedge is to be used what is the effective

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