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XYZ Corporation, located in the United States, has an accounts payable obligation of 2 2 5 0 million payable in six months to a bank
XYZ Corporation, located in the United States, has an accounts payable obligation of million payable in six months to a bank in Tokyo. The current spot rate is and the six month forward rate is The annual interest rate is percent in Japan and percent in the United States.
a What is the future dollar cost of meeting this obligation using the money market hedge a
b None of the above
c
d
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