Tiffany & Co exports new products to France and has receivables of Euro902,255.64 Assume that the one-year interest rates are 2% and 6% in the U.S. and France respectively. Further, while the spot rate and one-year forward rate for Euro are $1.33 and $1.3743. Find how much Tiffany & Co will receive in U.S. dollars one year from now if it uses a money market hedge.

Select one:

a. $1,143,169.81

b. $1,131,738.11

c. $1,257,486.79

d. $1,154,716.98

e. none of the answers is correct

Consolidated Edison Inc exports new products to Denmark and has receivables of Danish Krone9,868,421.05 Assume that the one-year interest rates are 2% and 6% in the U.S. and Denmark respectively. Further, while the spot rate and one-year forward rate for Danish Krone are $0.1216 and $0.1257. Find how much Consolidated Edison Inc will receive in U.S. dollars one year from now if it uses a money market hedge.

Select one:

a. $1,143,169.81

b. $1,257,486.79

c. none of the answers is correct

d. $1,131,738.11

e. $1,154,716.98