On june 17 of a particular year an american watch dealer, Ask an Expert

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On June 17 of a particular year, an American watch dealer decided to import 100,000 Swiss watches. Each watch costs SF225. The dealer would like to hedge against a change in the dollar/Swiss franc exchange rate. The forward rate was $0.3881.

Determine the outcome from the hedge if it was closed on August 16, when the spot rate was $0.4434.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92078169

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