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Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm and gave the Swiss client a choice of paying either $ 1 1
Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm and gave the Swiss client a choice of paying either $ or
SF in three months.
Required:
Baltimore Machinery effectively gave the Swiss client a free option to buy up to $ using Swiss francs. What is the "implied"
exercise exchange rate?
Note: Round your answer to decimal places.
Implied exercise rate
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