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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
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
Giv-----------en -----------tha-----------t, -----------Ame-----------ric-----------an -----------wat-----------ch -----------dea-----------ler----------- im-----------por-----------ts -----------100-----------,00-----------0 S-----------wis-----------s W-----------atc-----------hes----------- Co-----------st -----------of -----------eac-----------h w-----------atc-----------ht=----------- SF-----------205----------- To-----------tal----------- Pr-----------ice----------- of----------- 10-----------0,0-----------00 -----------wat-----------ch=----------- SF-----------205----------- * -----------100-----------,00-----------0 =----------- SF-----------205-----------,00-----------0,0-----------0