question archive The client GE sold $300 million in turbines to a Mexican utility payable in 6 months and $500 million to a German utility payable in 1 year
The client GE sold $300 million in turbines to a Mexican utility payable in 6 months and $500 million to a German utility payable in 1 year
Subject:BusinessPrice: Bought3
The client GE sold $300 million in turbines to a Mexican utility payable in 6 months and $500 million to a German utility payable in 1 year.
a) Compute the dollar proceeds from the sales if GE decides to hedge using forward contracts.
b) Compute the dollar proceeds from the sales if GE decides to hedge foreign exchange exposure using options.
