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Unilever needs to borrow $25 million in two months for a 5 month period (assume 30 days per month). To lock in the rate in

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Unilever needs to borrow $25 million in two months for a 5 month period (assume 30 days per month). To lock in the rate in this loan Unilever buys a 25 Forward rate agreement (FRA) on LIBOR at 8%. In two months LIBOR is 7% and as a result receives a payment of what? Suppose it is January 1990 and the current spot rate for the DM is $0.6015. You purchased a call option for a premium of $.0385 for DM 100.000 and an exercise price of 50,5795 . What cash flow could be earned from immediately exercising the call option? 51.650 53,850 $2200 $2,200

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