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show work XYZ Corporation, located in the United States, has an accounts payable obligation of 1500 million payable in six months to a bank in
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XYZ Corporation, located in the United States, has an accounts payable obligation of 1500 million payable in six months to a bank in Tokyo. The current spot rate is 116/$1.00 and the six month forward rate is 109/$1.00. The annual interest rate is 3 percent in Japan and 6 percent in the United States. a) What is the future dollar cost of meeting this obligation using the money market hedge a. $19582168.89 b. $6589854.111 c. $13054779.26 d. $92,307Step by Step Solution
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