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Assume the following information: 4% U.S. deposit rate for 1 year - U.S. borrowing rate for 1 year = 5% Swiss deposit rate for 1
Assume the following information: 4% U.S. deposit rate for 1 year - U.S. borrowing rate for 1 year = 5% Swiss deposit rate for 1 year = 6% - Swiss borrowing rate for 1 year = 7% - Swiss forward rate for 1 year $1.0962 Swiss franc spot rate $1.0585 Also assume that a U.S. exporter denominates its Swiss exports in Swiss francs and expects to receive SF250,000 in 1 year. Using the information above, compute the approximate value of these exports in 1 year in U.S. dollars given that the firm executes a forward hedge. $255,750. O $274,050 O $264,625. $262,125
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