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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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