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QUESTION 4 0.83 Magnetronics, Inc., a U.S. company, owes its Taiwanese supplier NT$200 million in 3 months. The company wishes to hedge its NT$ payable.

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QUESTION 4 0.83 Magnetronics, Inc., a U.S. company, owes its Taiwanese supplier NT$200 million in 3 months. The company wishes to hedge its NT$ payable. The current spot rate is NT$1 = U.S.$0.03987, and the three month forward rate is NT$1 = U.S.$0.04051. What is the hedged dollar value of the payable (if Magnetronics were to use a forward contract)? a $7,974,000 b. $8,102,000

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