Hedge in the forward market against the possibility

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Reference no: EM131537173

Suppose Golden Eagle Company that buys bicycle parts from Ireland has an accounts payable worth €1, 500,000 due in three months. Suppose the current rate is €1/$. It wants to hedge in the forward market against the possibility that. :

1. dollar may depreciate against euro in three months time

2. short-term interest rates may rise in three months time.

3. short-term interest rates may rise in three months time.

4. dollar may appreciate against euro in three months time

Reference no: EM131537173

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