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Assume the following information: 90-day U.S. interest rate = 1.0% 90-day Euro interest rate = 2.0% Ft. 90-day(EURUSD) = 1.0850 St(EURUSD) = 1.0900 Assume that

Assume the following information: 90-day U.S. interest rate = 1.0% 90-day Euro interest rate = 2.0% Ft. 90-day(EURUSD) = 1.0850 St(EURUSD) = 1.0900 Assume that Sam Corp. from the United States will receive EUR 5,000,000 in 90 days. Would it be better off using a forward hedge or a money market hedge? (3 points) Substantiate your answer with estimated revenue for each type of hedge-- Forward hedge (7 points) and Money market hedge (10 points).

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