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6 points Save Answer Assume the following information: -90-day Ugurland interest rate = 7% -90-day Mangoland interest rate = 6% -90-day forward rate of Mangoland
6 points Save Answer Assume the following information: -90-day Ugurland interest rate = 7% -90-day Mangoland interest rate = 6% -90-day forward rate of Mangoland currency=Ugurland $.0.9 -Spot rate of Mangoland currency = Ugurland $.0.8 Assume that the Batista corporation in the Ugurland will need 175000 Mangoland currency in 90 days. It wishes to hedge this position. Would it be better off using a forward hedge or a money market hedge? Substantiate your answer with detailed calculations. Arial 3 (12pt) E TT T F Paragraph : DOO fx Mashups T HTHL CSS MacBook Air
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