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B . Langford Inc. expects to pay $$ 2 , 1 2 5 , 0 0 0 in one year on a loan. The existing

B. Langford Inc. expects to pay $$2,125,000 in one year on a loan. The existing spot rate of the Singapore dollar is $.58. The one-year forward rate of the Singapore dollar is $.62. Langford created a probability distribution for the future spot rate in one year as follows:
Assume that one-year put options on Singapore dollars are available, with an exercise price of $.64 and a premium of $.04 per unit. One-year call options on Singapore dollars are available with an exercise price of $.59 and a premium of $.03 per unit. Assume the following money market rates:
\table[[,U.S.,Singapore],[Deposit rate,8%,5%
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