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Business, 22.04.2021 21:20 Ramone8070

Jetta production cost in 2002 and 2003 was 8,500 Euro per Jetta. Jettas were sold in US at $12,000 in 2002 and 2003. Forward hedge exchange rate was 1.2 $/Euro in 2003. The market exchange rate was 1.83 $/Euro (i. e. rate without hedge) in 2003. If 1,500 Jetta were sold in US, in 2003, by 60% forward hedge and 40% not hedged. What would be profits or loss from sales of 1,500 Jetta in US

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Jetta production cost in 2002 and 2003 was 8,500 Euro per Jetta. Jettas were sold in US at $12,000 i...
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