Money Market Hedge on Receivables
Response to the following problem:
Assume that Stevens Point Co. has net receivables of 100,000 Singapore dollars in 90 days. The spot rate of the Singapore dollar is $.50, and the Singapore interest rate is 2 percent over 90 days. Suggest how the U.S. firm could implement a money market hedge. Be precise.
Make sure you use enough details to support your answer.