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13. Hopkins Co. transported goods to Switzerland and will receive 3.5 million Swiss francs in six months. It believes the six-month forward rate will be
13. Hopkins Co. transported goods to Switzerland and will receive 3.5 million Swiss francs in six months. It believes the six-month forward rate will be an accurate forecast of the future spot rate. The six-month forward rate of the Swiss franc is $.71. A put option is available with an exercise price of .72 and a premium of $.02. a. Would Hopkins prefer a put option hedge or no hedge? b. Explain
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