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Assume that Parker Company will receive SF200,000 in 360 days. Assume the following interest rates: U.S. Switzerland 360-day borrowing rate 7% 5% 360-day deposit rate
Assume that Parker Company will receive SF200,000 in 360 days. Assume the following interest rates:
U.S. | Switzerland | |
360-day borrowing rate | 7% | 5% |
360-day deposit rate | 6% | 4% |
Assume the forward rate of the Swiss franc is $1.0455 and the spot rate of the Swiss franc is $1.0037. If Parker Company uses a money market hedge, it will receive ____ in 360 days. ?
$97,556, $103,265,, $101,335, $101,326, $101,317
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