The Chicken Company, a company with headquarters in Switzerland, has a receivable of one million dollars, which it will receive in one year. Chicken can borrow euro at an annual rate of 10%, can borrow Swiss francs at an annual rate of 9%, and can borrow dollars at an annual rate of 11%.
To complete the spot transaction hedge, Chicken must first borrow what currency?
How much of that currency will Chicken borrow?
What currency will Chicken buy?