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Nucor, Inc. (U.S. based MNC) will receive 900,000 euros in one year. The spot exchange rate today is $1.0500 per euro. It observes that 1.
Nucor, Inc. (U.S. based MNC) will receive 900,000 euros in one year. The spot exchange rate today is $1.0500 per euro. It observes that 1. The one-year interest rate for euros is 9%, and the one-year interest rate for U.S. dollars is 7%. 2. In the option market, there is one-year call option or put option available. Both options have the same exercise price of $1.0300 per euro, and a premium of $0.0075 per euro. 3. In the forward market, the one-year forward rate exhibits a 4% discount from the current spot exchange rate. What are the expected U.S. dollars Nucor ends up receiving for its 900,000euroreceivablebasedon its exchange rate forecasting given below? Question 28 options: $924,750.00.$914,850.00.$928,350.00.$938,250.00
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