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Intro Bay Area Sports Car is a luxury car dealership importing cars from Europe. The company will need 100,000 euros () in one year to
Intro Bay Area Sports Car is a luxury car dealership importing cars from Europe. The company will need 100,000 euros () in one year to pay its German suppliers. The spot rate is $1.06 per euro and the one-year forward rate is $1.061 per euro. The U.S. interest rate is 8% and the euro interest rate is 2%. Part 1 Attempt 1/10 for 10 pts. What amount of euros is required now if the company wants to create a money market hedge (in )? 0+ decimals Submit Attempt 1/10 for 10 pts. Part 2 How much should the company borrow now (in $)? 0+ decimals Submit Attempt 1/10 for 10 pts. Part 3 What is the total cost of creating a money market hedge, including interest (in $)? 0+ decimals Submit
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