9) Suppose your U.S. firm will receive EUR1,000,000 in one year. The interest rate on the euro is 5% p.a. and on the U.S. dollar is 3% p.a. The current spot rate for the euro is $1.00. If you use a money market hedge, how much will you receive in one year? Note: 1,000,000/1.03 = 970,874; 1,000,000/1.05 = 952,381; 970874 * 1.05 = 1,019,418; 952,381 * 1.03 = 980,952. A) $970,874 B) $980,952 C) $1,019,418 D) None of the above. 10) Why might a Japanese retail investor who is risk-averse choose to trade with the Mexican peso over the Turkish lira? A) If the peso is more volatile vis-a-vis the U.S. dollar than the lira. B) If the peso is less volatile vis-a-vis the U.S. dollar than the lira. C) If Mexico's economic situation is relatively more stable than Turkey's situation. D) B & C