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5) (6 pts) Assume that Patton Co. will receive 100,000 Swiss Franc in 180 days. Today's spot rate of the CHF is $1.152/1CHF, and the

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5) (6 pts) Assume that Patton Co. will receive 100,000 Swiss Franc in 180 days. Today's spot rate of the CHF is $1.152/1CHF, and the 180-day forward rate is $1.148/1CHF. a) Fill in the following chart which compares the amount of US dollars received if Patton leaves the position unhedged or if they use a Forward hedge. 114800 Exp Spot Rate In 180 Days Prob Amount US$ received if Unhedged US$ received if Forward Hedge $1.10 15% 10000 114500 $1.12 30% 1 2000 114800 $1.16 35% 116000 118000 114 Soo 114800 $1.18 20% b) What is the probability that the amount received from the Forward hedge will exceed the Amount received if left unhedged?_55

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