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Your company expects to receive 200,000 euros in one year from exporting to France. Consider the following information about the U.S. and France: U.S. France
Your company expects to receive 200,000 euros in one year from exporting to France. Consider the following information about the U.S. and France: U.S. France Nominal interest rate 3.8% 4.4% Spot rate $1.08 per euro Part 1 | Attempt 1/3 for 10 pts. How much will your company receive if your company hedges its receivables and interest rate parity holds (in $)? 0+ decimals Submit Attempt 1/3 for 10 pts. Part 2 How much will your company receive if your company does not hedge its receivables and the international Fisher effect holds (in $)? (use approximation form) 0+ decimals
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