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Intro You are CFO of a U.K.-based importer, which have placed an order with an Italian firm for 1,000,000 worth of bicycles. Payment (in euro)
Intro You are CFO of a U.K.-based importer, which have placed an order with an Italian firm for 1,000,000 worth of bicycles. Payment (in euro) is due in 12 months. Use a money market hedge to redenominate this one-year payable into a pound- denominated payable with a one-year maturity Contract Size 10,000 Country Britain pound 12 months forward Currency per U.S. $ 0.5618 interest APR U.S. S equiv. $ 1.78 $ 1.96 $ 1.53 $ 1.56 0.5102 rates 10,000 Euro Is 1 % 0.6536 0.641 le 1.5 % SFr. 10.000 12 months forward Swiss franc 12 months forward is - $ 0.99 $ 1.05 SFr. 1.01 SFr. 0.9524 2.5 % 3.5 % ISFr - Attempt 1/10 for 10 pts Part 1 What's the amount of this pound-denominated payable with a one-year maturity? 0+ decimals Submit
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