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PLEASE NOTE THIS IS NOT INTENDED TO BE SUBMITTED AS PART OF TUTORS WORK OR HOMEWORK/> IT IS JUST CHECKING OF SOLUTIONS THAT I ALREADY

PLEASE NOTE THIS IS NOT INTENDED TO BE SUBMITTED AS PART OF TUTORS WORK OR HOMEWORK/> IT IS JUST CHECKING OF SOLUTIONS THAT I ALREADY HAVE TO SEE IF I HAVE THEM CORRECT AS PART OF PREPARATION FOR AN EXAM. I AM FULLY WITHIN THE CODES OF MY OWN UNIVERSITY TO COMPARE ANSWERS WITH ANY EXTERNAL MATERIAL AS I WILL BE TESTED UNDER EXAM CONDITIONS.

Please can I get a solution Manual to the following exam style question in Multinational Finance:

Yandan Inc. is a Chinese subsidiary of a U.S multinational company. The company's financial manager is considering the impact of expected movements in the value of RMB, the Chinese currency, in the next 90 days. Yandan can borrow either $10 million or the equivalent amount in the RMB. The 90-day lending rate for the dollar is 0.68% and the 90-day dollar borrowing rate is 0.683%. The 90-day lending rate for the RMB is 1.23% and the corresponding RMB borrowing rate is 1.28%. The financial manager considers using the money market to hedge the effects of possible changes in the RMB/dollar exchange rate. Please help the financial manager find out the outcome of the following situations:

a - The RMB depreciates from 0.163 RMB/dollar to 0.165 RMB/dollar (35 marks)

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