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Transaction exposure management involves the following: A) None of them B) balance sheet hedge C) money market hedge D) diversified financing E) money market hedge

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Transaction exposure management involves the following: A) None of them B) balance sheet hedge C) money market hedge D) diversified financing E) money market hedge and balance sheet hedge Assume that a Swedish firm will receive Aus$80,000 in 90 days. 90-day Australian interest rate = 6% 90-day Swedish interest rate = 8% 90-day forward rate of Australian dollar = SK1.34/Aus$ Spot rate of Australian dollar = SK1.29/Aus$ Calculate the firm's revenue if it hedges in the money market? A) Aus$ 109,222.64 OB) Aus$ 105,147.17 C) SK 103,708.37 D) SK 105,147.17 E) SK 109,222.64

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