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Denominated receivable with one-year maturity

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Reference no: EM133061058

Your firm is a Swiss exporter of bicycles. You have sold an order to a French firm for €2,000,000 worth of bicycles. Payment from the French firm (in euro) is due in 12 months. Use a money market hedge to redenominate this one-year receivable into a Swiss franc -denominated receivable with a one-year maturity.

Pair

 

 

Int rates

GBP/USD

Spot

1.3065

2.5%  UK

 

12M FWD

1.3174

EUR/USD

Spot

1.1289

3% Euro zone 

 

12M FWD

1.1373

USD/CHF

Spot

0.9338

0.8% Swiss

 

12M FWD

0.9438

USD

 

 

3.4%

Reference no: EM133061058

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