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b. Sell a one-year forward contract for the amount of 250,000 euros at the forward rate of $1.20. One year later, UCD will fulfill its

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b. Sell a one-year forward contract for the amount of 250,000 euros at the forward rate of $1.20. One year later, UCD will fulfill its obligation and receives the amount of $300,000. c. Buy a one-year forward contract for the amount of 250,000 euros at the forward rate of $1.14.One year later, UCD will fulfill its obligation and receives the amount of $285,000 d. Sell a one-year forward contract for the amount of 250,000 euros at the forward rate of $1.14. One year later, UCD will fulfill its obligation and receives the amount of $285,000. 49. Continued from Question 48, if UCD decides to use money market hedging strategy to hedge its receivables, how shall UCD implement the strategy? a. UCD should first borrow euros for the amount of 250,000 euros. UCD will then go to the foreign exchange market to exchange the amount borrowed into U.S. dollars which yields UCD the amount of $300,000. UCD will deposit the amount exchanged at the bank in the U.S. One year later, UCD will pay off its euro loan using the euro payments received. b. UCD should first borrow U.S. dollars for the amount of 231,481.48. UCD will then go to the foreign exchange market to exchange the amount borrowed into euros which yields UCD the amount of 250,000 euros. UCD will deposit the amount exchanged at the bank in Europe. One year later, UCD will pay off its U.S. dollar loan by using the euro payments received. UCD should first borrow U.S. dollars for the amount of 300,000. UCD will then go to the foreign exchange market to exchange the amount borrowed into euros which yields UCD the amount of 250,000 euros. UCD will deposit the amount exchanged at the bank in Europe. One year later, UCD will pay off its U.S. dollar loan by using the uro payments received. d. UCD should first borrow euros for the amount of 231,481.48 euros. UCD will then go to the foreign exchange market to exchange the amount borrowed into U.S dollars which yields UCD the amount of $277,777.78. UCD will deposit the amount exchanged at the bank in the U.S. One year later, UCD will pay off its euro loan using the euro payments received 0. Continued from Question 49, how many U.S. dollars will UCD end up receiving for its 200,000 euro receivable by using money market hedge? a. $285,000.00. b. $300,000.00 c. $286,111.11. d. $238,425.93. 51. Continued from Question 48, if UCD decides to use options contracts to hedge its receivables, UCD shall a. Buy one-year call options of 250,000 euros with the exercise price $1.18 per euro b. Sell one-year put options of 250,000 euros with the exercise price $1.18 per euro. c. Buy one-year put opti ons of 250,000 euros with the exercise price $1.18 per euro. b. Sell a one-year forward contract for the amount of 250,000 euros at the forward rate of $1.20. One year later, UCD will fulfill its obligation and receives the amount of $300,000. c. Buy a one-year forward contract for the amount of 250,000 euros at the forward rate of $1.14.One year later, UCD will fulfill its obligation and receives the amount of $285,000 d. Sell a one-year forward contract for the amount of 250,000 euros at the forward rate of $1.14. One year later, UCD will fulfill its obligation and receives the amount of $285,000. 49. Continued from Question 48, if UCD decides to use money market hedging strategy to hedge its receivables, how shall UCD implement the strategy? a. UCD should first borrow euros for the amount of 250,000 euros. UCD will then go to the foreign exchange market to exchange the amount borrowed into U.S. dollars which yields UCD the amount of $300,000. UCD will deposit the amount exchanged at the bank in the U.S. One year later, UCD will pay off its euro loan using the euro payments received. b. UCD should first borrow U.S. dollars for the amount of 231,481.48. UCD will then go to the foreign exchange market to exchange the amount borrowed into euros which yields UCD the amount of 250,000 euros. UCD will deposit the amount exchanged at the bank in Europe. One year later, UCD will pay off its U.S. dollar loan by using the euro payments received. UCD should first borrow U.S. dollars for the amount of 300,000. UCD will then go to the foreign exchange market to exchange the amount borrowed into euros which yields UCD the amount of 250,000 euros. UCD will deposit the amount exchanged at the bank in Europe. One year later, UCD will pay off its U.S. dollar loan by using the uro payments received. d. UCD should first borrow euros for the amount of 231,481.48 euros. UCD will then go to the foreign exchange market to exchange the amount borrowed into U.S dollars which yields UCD the amount of $277,777.78. UCD will deposit the amount exchanged at the bank in the U.S. One year later, UCD will pay off its euro loan using the euro payments received 0. Continued from Question 49, how many U.S. dollars will UCD end up receiving for its 200,000 euro receivable by using money market hedge? a. $285,000.00. b. $300,000.00 c. $286,111.11. d. $238,425.93. 51. Continued from Question 48, if UCD decides to use options contracts to hedge its receivables, UCD shall a. Buy one-year call options of 250,000 euros with the exercise price $1.18 per euro b. Sell one-year put options of 250,000 euros with the exercise price $1.18 per euro. c. Buy one-year put opti ons of 250,000 euros with the exercise price $1.18 per euro

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