Question
The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $0.46. The following interest rates exist: U.S. Switzerland
The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $0.46. The following interest rates exist:
U.S.Switzerland
360day borrowing rate0.05.05
360day deposit rate.060.02
You need to purchase SF200,000 in 360 days. If you use amoney market hedge, the amount of dollars you need in 360 days is:
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
16th edition
1337902608, 978-1337902601
