Share
Explore BrainMass

International Finance

2. Money Market Hedge on Receivables. Assume that Stevens Point Co. has net receivables of 100,000 Singapore dollars in 90 days. The spot rate of the S$ is $.50, and the Singapore interest rate is 2% over 90 days. Suggest how the U.S. firm could implement a money market hedge. Be precise.

Solution Preview

ANSWER:

The firm could borrow the amount of Singapore dollars so that the 100,000 Singapore ...

Solution Summary

This posting provides the answer to the student's International Finance question.

$2.19