What are two other ways swatch might hedge

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On June 1st, 2016, Swatch expects to ship 3,500,000 watches from its Swiss plant to the US that it will sell through retail outlets on 270-day terms at $65 each. Therefore Swatch will receive payment from these outlets on February 25th, 2017. Assuming that Swatch needs to cover its expenses in Switzerland and thus wants to hedge its SF/US$ exposure using a forward contract with a Swiss bank, what is the minimum amount of Swiss Francs they should receive on February 25th, 2017 given the 9-month forward rate you calculated in problem one for one US dollar in terms of Swiss Francs? What are two other ways Swatch might hedge its SF/US$ exposure?

Reference no: EM131075849

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