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QUESTION 11 A U.S.company exported a product to a British company and will be receiving 20 million for the sale in three months. The current
QUESTION 11 A U.S.company exported a product to a British company and will be receiving 20 million for the sale in three months. The current spot rate is $1.3000/. The three-month interest rates are 0.6 percent per annum in the United States and 2 percent per annum in the U.K, respectively. How much is the future value dollar proceeds for the U.S. company using the money market hedge? Round your answer to the nearest integer
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
