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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

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