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Parker Company needs to pay SF 200.000 in 1 year to its supplier Assume the following interest rates available to Parker for borrowing and lending
Parker Company needs to pay SF 200.000 in 1 year to its supplier Assume the following interest rates available to Parker for borrowing and lending investing) in USD and SF 11-year borrowing rate 11-year lending rate U.S. (USD) 6% 6% Switzerland (SF) 5% 5% Assume the current 1 year forward rate of the Swiss Francis $0 50 SF and the current spot rate of the Swiss franc is $0 40 SF if Parker Company uses a 100% forward hedge fody needs to pay 10000 396000 Parker Company needs to pay SF 200.000 in 1 year to its supplier Assume the following interest rates available to Parker for borrowing and lending investing) in USD and SF 11-year borrowing rate 11-year lending rate U.S. (USD) 6% 6% Switzerland (SF) 5% 5% Assume the current 1 year forward rate of the Swiss Francis $0 50 SF and the current spot rate of the Swiss franc is $0 40 SF if Parker Company uses a 100% forward hedge fody needs to pay 10000 396000
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