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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 $12,800 or SF19,200
Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm and gave the Swiss client a choice of paying either $12,800 or SF19,200 in three months. Required: Baltimore Machinery effectively gave the Swiss client a free option to buy up to $12,800 using Swiss francs. What is the "implied" exercise exchange rate? Note: Round your answer to 4 decimal places. Answer is complete but not entirely correct
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