Instructions: Show all calculations in detail. No partial credit will be given for just answers.

2) The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $.48. The following interest rates exist: U.S. Switzerland 360 day borrowing rate 7% 5% 360 day deposit rate 6% 4% You need to purchase CHF200,000 in 360 days. If you use a money market hedge, the amount of dollars you need in 360 days is: