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Suppose that An American firm imports 1,000,000 worth of goods from a French firm payment due in one year US one year interest rate: 6%

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Suppose that An American firm imports 1,000,000 worth of goods from a French firm payment due in one year US one year interest rate: 6% French one year interest rate: 10% Spot rate: $1.4000/ One year forward rate: $1.3491/ Show that the forward market hedge and the money market hedge are equivalent. Arial 3 (12pt) T

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