Canvas Question 19 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% pa, in 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/, and the 1 year forward exchange rate is $1.4802/. You decide to hedge the risk with a money market hedge (synthetic forward contract). Which of the alternatives lie. forward contract or money market hedge) is superior? Forward contract Money market ledige Both of them are equivalent Not enough information None of the above Question 20 3 pts Suppose that there is a 2% probability that the government of Argentina will nationalize its banking system and freeze all foreign deposits indefinitely with no recovery rate during the next year. If the dollar deposit interest rate in the United States is 10% what dollar interest would Argentine banks have to offer in order to attract deposits from a risk neutral foreign investors? 10% 12.24% 10.2015 A/s los