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QUESTION 7 2.5 p You are the CFO of World Platform Int., a U.S. multinational corporation. Your firm exports its products to the euro zone

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QUESTION 7 2.5 p You are the CFO of World Platform Int., a U.S. multinational corporation. Your firm exports its products to the euro zone and denominates the exports in euros. Your firm expects to receive 500,000 euros in 1 year. You have access to the following information U.S. deposit rate for 1 year U.S. borrowing rate for 1 year Euro deposit rate for 1 year Euro borrowing rate for 1 year Euro forward rate for 1 year Euro spot rate 10% 9% 12% 14% - $1.24 - $1.20 Using the information above, what will be the approximate value of these exports in 1 year in U.S. dollars given that your firm executes a money market hedge? $620,000 $578,947 $543,860 $526,316

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