Using EXCEL, calculate the overall cost of each hedging strategy (e.g., do nothing, full forward,...
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Using EXCEL, calculate the overall cost of each hedging strategy (e.g., do nothing, full forward, 50% forward, full put option, and money market hedge) at exchange rates ranging from 80 KRW/1 MXN to 110 KRW/1 MXN at 1 KRW increments (i.e., 81, 82, 83, 84 KRW/1 MXN etc...110 KRW/1 MXN). Create a separate spreadsheet for each of the options, then use that data to create a master table showing the overall costs of each strategy (as shown below). In the master table, highlight the lowest amount in Pesos for each of the potential spot rates (i.e., the minimum for each row). Do Nothing Full Forward 50% Forward Full Put Option Money Market KRW/1 Peso MXN 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 Using EXCEL, calculate the overall cost of each hedging strategy (e.g., do nothing, full forward, 50% forward, full put option, and money market hedge) at exchange rates ranging from 80 KRW/1 MXN to 110 KRW/1 MXN at 1 KRW increments (i.e., 81, 82, 83, 84 KRW/1 MXN etc...110 KRW/1 MXN). Create a separate spreadsheet for each of the options, then use that data to create a master table showing the overall costs of each strategy (as shown below). In the master table, highlight the lowest amount in Pesos for each of the potential spot rates (i.e., the minimum for each row). Do Nothing Full Forward 50% Forward Full Put Option Money Market KRW/1 Peso MXN 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110
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