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of capital is 11%. Compare alternate ways below that Najafi might deal with its foreign exchange exposure. a. How much in U.S. dollars will Najafi
of capital is 11%. Compare alternate ways below that Najafi might deal with its foreign exchange exposure. a. How much in U.S. dollars will Najafi pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be KRW1,113 = USD1.00? KRW1,162 = USD1.00? b. How much in U.S. dollars will Najafi pay in 6 months with a forward market hedge? c. How much in U.S. dollars will Najafi pay in 6 months with a money market hedge? e. What do you recommend? a. How much in U.S. dollars will Najafi pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be KRW1,113 = USD1.00? (Round to the nearest cent.) How much in U.S. dollars will Najafi pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be KRW1,162 = USD1.00? USD (Round to the nearest cent.) b. How much in U.S. dollars will Najafi pay in 6 months with a forward market hedge? US (Round to the nearest cent.) c. How much in U.S. dollars will Najafi pay in 6 months with a money market hedge? USI (Round to the nearest cent.) d. How much in U.S. dollars will Najafi pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than KRW1,200 = USD1.00? (Round to the nearest cent.)
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