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In any case, director’s opinion is not really supported by the recent economic reports that show further growth of the German GDP and even lower inflation rates. If both predictions happened to be realized, we know from the parity conditions that Mark will appreciate further.
The company on March 1 is not assured if Germans are finally going to buy the outdated microchips. As a result, Madesco needs a kind of insurance that will protect company from currency exchange risk in case the deal goes through. On the other hand, Madesco should not be entered into a commitment that it may creates losses for locking a cash flow payment that it may never happened in case the Germans decide to not buy the microchips...
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Common topics in this essay:
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