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Hopkins Corporation has a subsidiary located in Singapore. Next year, the Singapore subsidiary is expected to generate income of S$2,000,000. Hopkins decides to hedge its

Hopkins Corporation has a subsidiary located in Singapore. Next year, the Singapore subsidiary is expected to generate income of S$2,000,000. Hopkins decides to hedge its translation exposure using a forward contract. The 360-day forward rate for the Singapore dollar is $0.56. If the Singapore dollar ________ by $0.03, Hopkins will have realized a ________ of $________.

a. Appreciates; loss; 60,000

b. Depreciates; gain; 60,000

c. Depreciates; loss; 60,000

d. [Depreciates; gain; 60,000] and [Appreciates; loss; 60,000]

e. Appreciates; gain; 60,000

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