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will up vote, thank you Assume the U.S. Dollar government bond yield curve is flat at 0% per year and the Swiss Franc government bond
will up vote, thank you
Assume the U.S. Dollar government bond yield curve is flat at 0% per year and the Swiss Franc government bond yield curve is flat at -1.0% per year (negative 1.0%). The spot exchange rate is $1.10/franc. Assume your firm has a contract to buy 500 million Swiss franc in one year, at a contract price of $1.10/franc. (please make it clear What is the value - in dollars - (to your firm) of this contract? if this contract has positive or negative value)Step by Step Solution
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