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You are thinking about using a money market hedge to manage the risk of a 1,000,000 accounts receivable that is due in 3 months. The
You are thinking about using a money market hedge to manage the risk of a 1,000,000 accounts receivable that is due in 3 months. The annual investment rate and borrowing rate are respectively 4% and 8%. How much do you have to borrow or invest today?
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