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Please use the following information to answer the question below: A US firm's Accounts Payables due in 1 year is Current Spot rate for CHF
Please use the following information to answer the question below: A US firm's Accounts Payables due in 1 year is Current Spot rate for CHF is (SR): Annual interest rate in US is (Rh) Annual interest rate in Switzerland is (Rf): CHF 10,000,000 $1.20 5% 2% If the firm uses a MONEY MARKET HEDGE, one year from now, their accounts payable will cost them: $12,352,941 O $9,803,922 $11,764,706 $12,500,000
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