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Suppose that a U.S. -based company exported goods to a Swiss firm and gave the Swiss client a choice of paying either $50,000 or SF

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Suppose that a U.S. -based company exported goods to a Swiss firm and gave the Swiss client a choice of paying either $50,000 or SF 75,000 in three months. The spot exchange rate is $0.63/SF and the three-month forward rate is $0.65/SF. You are the CFO of the U.S. company. If you believe that the spot rate in three months is the same as the current forward rate, which currency do you think the Swiss client will choose to use for payment, and what is the expected value of this free option for the Swiss client? O US dollars: 2,750 dollars Swiss francs; 1.923 SF Swiss francs;4,365 SF O US dollars: 1,250 dollars

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