Explore BrainMass

International Finance - Oregon Co.'s

20. Forward Hedge. Would Oregon Co.'s real cost of hedging Australian dollar payables every 90 days have been positive, negative, or about zero on average over a period in which the dollar weakened consistently? What does this imply about the forward rate as an unbiased predictor of the future spot rate? Explain.

Solution Preview

ANSWER: The nominal cost when hedging Australian dollar payables would have been below the nominal cost of payables on an ...

Solution Summary

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