Question
Grady Co. will need 250,000 Swiss franc in a year. Based on the information below: US SF 1-year borrowing rate 6% 5% 1-year deposit rate
Grady Co. will need 250,000 Swiss franc in a year. Based on the information below:
| US | SF | |
| 1-year borrowing rate | 6% | 5% |
| 1-year deposit rate | 5% | 4% |
| 1-year forward Swiss franc | 1.46 CHF | |
| Spot rate of Swiss franc | 1.48 CHF |
If you use a money market hedge, determine the amount of dollars that you will pay for the payables.
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Handbook Of Short Selling
Authors: Greg N. Gregoriou
1st Edition
0123877245, 978-0123877246
