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Name Answer the following question directly on this page Assume the following information: U.S. interest rate for I year Swiss interest rate for I year

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Name Answer the following question directly on this page Assume the following information: U.S. interest rate for I year Swiss interest rate for I year Swiss forward rate for I year Swiss frane spot rate 1 1% 10% $0.40 $0.39 SF600,000 in one if the Also assume that a U.S. exporter denominates its Swiss exports in Swiss franes and expects to receive year. Using the information above, what will be the approximate value of these exports in one year in U.S. dollars tirm executes a money market hedge? Show your work and describe the steps you are taking for full credit. (4 points)

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