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ABC inc. has 100M account payables that the company will get in one year. ABC wants to hedge it using the money market hedge. Today's
ABC inc. has 100M account payables that the company will get in one year. ABC wants to hedge it using the money market hedge. Today's spot rate is 1.5$/, the company can borrow and invest s at 3%, and $s at 4%. How many dollars does the company need to borrow today?
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