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Intro 1-year rates of interest Borrowing Euro 5.9 % Pound 5.5 % Lending 5.25 % 4.8 % $ Spot exchange rates 1.28 = 1.00 1.72

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Intro 1-year rates of interest Borrowing Euro 5.9 % Pound 5.5 % Lending 5.25 % 4.8 % $ Spot exchange rates 1.28 = 1.00 1.72 = 1.00 $ Attempt 1/4 for 10 pts. Part 1 A UK firm has a 1,000,000 receivable due in one year. With money market hedge, the firm can lock in to be received in one year 0+ decimals Submit

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