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Help with the math . . . 14. An American firm is owed 2,400,000.00 payable in one year. The current spot it $1.0000/. An European
Help with the math . . .
14. An American firm is owed 2,400,000.00 payable in one year. The current spot it $1.0000/. An European bank is paying 2.50% on deposits or will lend at 7.00%. A U.S. bank is paying 4.00% or will lend at 5.50%. The firm will hedge this exposure with money market hedging. How much will they get in one year? (a) $2,242,990.65 (b) $2,332,710.28 (c) $2,532,000.00 (d) $2,366,355.14 (e) None of the aboveStep by Step Solution
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