Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Your company just received a $500,000 cash remittance from your British subsidiary. If the risk-free one-year T-bill rate is 4.5%, the current exchange rate is
Your company just received a $500,000 cash remittance from your British subsidiary. If the risk-free one-year T-bill rate is 4.5%, the current exchange rate is $1.45/, and the one-year forward rate is $1.44/, then the present value of the remittance is _________________.
| a. | $725,000
| |
| b. | $500,000
| |
| c. | $693,780
| |
| d. | $478,469 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started