Assume you are involved in cash management

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Reference no: EM132044595

Assume you are involved in cash management for a U.S. multinational corporation. The company is expecting a $10 million cash receipt in December 2018. The investment horizon is 13 weeks. You are considering whether to lock in interest rates today with U.S. treasury futures or wait until December. Currently, 13 week T-Bill rate is 1.765%. What is your decision? You must explain your answer including why or why not hedge.

Reference no: EM132044595

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