Canvas A * Question 16 1 pts Carlos is a portfolio manager for Deutsche Bank. He is considering two alternative investments of EUR 10,000,000: 1 year euro deposits or 1 year Swiss franc (CHF) deposits. He has decided not to bear transaction foreign exchange risk. Suppose she has the following data: 1 year CHF interest rate 7% pa. 1 year EUR interest rate, 13% pa, spot rate EUR1.1960/CHF, 1 year forward rate, EUR1.2024/CHF Which of these deposits provides the higher euro return in 1 year? Euro deposits Swiss francs(CHF) deposits Both of them are equivalent in terms of return Not enough information None of the above Question 17 1 pts You are a sales manager for Google Nexus and export cellular phones from the United States to other countries. You have just signed a deal to ship phones to a British distributor. The deal is denominated in pounds, and you will receive 900,000 when the phones arrive in London in 1 year. Assume that you can borrow and lend at 7% pain US dollars and at 10%p.a. in British pounds. Both interest rate quotes are for one year. The spot exchange rate is $1.4945/E, and the 1 year forward exchange rate is $1.4802/E. You decide to hedge the risk with a forward contract. What is the forward hedge dollar revenue? 51307 $1031.878 $1036 140 $1.332.180