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XYZ Corporation, located in the United States, has an accounts payable obligation of 1500 million payable in six months to a bank in Tokyo. The
XYZ Corporation, located in the United States, has an accounts payable obligation of 1500 million payable in six months to a bank in Tokyo. The current spot rate is #116/$1.00 and the six month forward rate is #109 $1.00. The annual interest rate is 3 percent in Japan and 6 percent in the United States a) What is the future dollar cost of meeting this obligation using the money market hedge a. $ 6589854.111 b. $ 19582168.89 C. $13054779.26 O d. $92,307. XYZ Corporation, located in the United States, has an accounts payable obligation of 1500 million payable in six months to a bank in Tokyo. The current spot rate is #116/$1.00 and the six month forward rate is #109 $1.00. The annual interest rate is 3 percent in Japan and 6 percent in the United States a) What is the future dollar cost of meeting this obligation using the money market hedge a. $ 6589854.111 b. $ 19582168.89 C. $13054779.26 O d. $92,307
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