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Your firm is an Italian importer of British bicycles. You have placed an order with a British firm for 1,500,000 worth of bicycles. Payment (in
Your firm is an Italian importer of British bicycles. You have placed an order with a British firm for 1,500,000 worth of bicycles. Payment (in pounds sterling) is due in 12 months. Use a money market hedge to redenominate this one-year receivable into a euro-denominated receivable with a one-year maturity.The following were computed without rounding. Select the answer closest to yours. Contract Size 10,000 Country Britain (Pound) 12 Months Forward Euro 12 Months Forward Swiss Franc 12 Months Forward 10.000 U.S. S equis. $1.9600 $2.0000 $1.5600 $1.6000 $0.9200 $1.0000 Currency per U.S. S 0.5102 0.5000 0.6410 0.6250 SFr. 1.0870 SFr. 1.0000 interest APR rates is = 1% le = 2% SFr. 10.000 i - 30 A. 1,425,490.20 1,550,328.87 oc. 1,650,431.21 OD. 1,866,318.14
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