Forward market hedge structured

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How much revenues would Baker Adhesives ( Case 38) have received in the initial order ( exhibit 1) if the Bid on real on June 5, 2006 had been 0.4265 USD per BRL? How much would be the difference between their actual revenue and anticipated revenue in this situation?

1. How was the forward market hedge structured differently from the money market hedge alternative for Baker for the new order?

2. What could be reasons why Baker may have preferred the forward market hedge compared to the money market hedge and the unhedged position?

Reference no: EM133305593

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