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6. Assume that Epsilon Co. has net receivables of 100,000 Singapore dollars in 90 days. The spot rate of the Singapore dollar is $.75, the
6. Assume that Epsilon Co. has net receivables of 100,000 Singapore dollars in 90 days. The spot rate of the Singapore dollar is $.75, the Singapore interest rate on loan is 3 percent over 90 days, and the U.S. interest rate on deposit is 2 percent over 90 days. Suggest how the U.S. firm could implement a money market hedge. Be precise.
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