Determine the spot and 12-month forward exchange rates, and determine any change in the ROS repatriated in 12 months based on exchange rates versus the current forecast.
Describe the repatriation using each of the following:
a spot transaction
an outright forward
a foreign-exchange swap
Would there be any use or benefit in using a currency option or currency swaption? Describe each.
Be sure to consider any U.S. corporate taxes that may be due and also whether there are any tax holidays in effect that may alter the taxes due on repatriation of the profits.
How would you advise the company to handle the repatriation