Please enable JavaScript.
Coggle requires JavaScript to display documents.
IF Project Recommendation (Money Market Hedge (Calculate USD borrowing…
IF Project Recommendation
Forward Market
Find out 3 month forward rate
Calculate AR
Money Market Hedge
Calculate USD borrowing interest rate
Calculate the amount to borrow
Repay USD Borrowing from the proceeds
Convert receiving from bank at spot Rupee rate
Compare with Forward hedge
Do Nothing
Convert 3.5 Million Dollar at then prevailing spot rate
options market
Calculate Cost of options
At the money Strike price
premium percentage
Cost of capital for comparison with other hedging alternative
calculate future value of put premium
Compare with forward receivable and calculate break even rate
Compare with unhedged position