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An American firm owes 3,500,000.00 payable in one year. The current spot is $1.7143 / . A British bank is paying 100% on deposits or

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An American firm owes 3,500,000.00 payable in one year. The current spot is $1.7143 / . A British bank is paying 100% on deposits or will lend at 3,00%. A U.S. bank is paying 2.50% or will lend at 7.00%. The firm would like to hedge this exposure with money market hedging. How much do they need to borrow today? None of the alternatives 55.825.291.26 3.465.346 53 $5.940.542.56 3.398,058.25

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