PREVIEW
QUESTION 1
Forward Hedge
To purchase Botswana Pula 30 days forward
Namibia Dollars (NAM$) in 30 days = forward rate of NAM x payables in BWP
= NAM$1.25 X (BP300 000/1BP)
= NAM$375 000
QUESTION 1
Forward Hedge
To purchase Botswana Pula 30 days forward
Namibia Dollars (NAM$) in 30 days = forward rate of NAM x payables in BWP
= NAM$1.25 X (BP300 000/1BP)
= NAM$375 000