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Money market hedge: S($/euro) = 1.50 F($/euro) = 1.47 i$ = 3% ieuro = 4% My U.S. company owes 100,000 euros which is due in
Money market hedge:
S($/euro) = 1.50 F($/euro) = 1.47 i$ = 3% ieuro = 4%
My U.S. company owes 100,000 euros which is due in one year. In order to eliminate my currency risk, form a money market hedge and show all the steps. What will be my actual payment in the end?
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