Assume that Parker Company will receive SF 200,000 in 360 days. Assume the following interest...
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Finance
Assume that Parker Company will receive SF 200,000 in 360 days. Assume the following interest rates:
UK Switzerland
360-day borrowing rate 7% 5%
360-day deposit rate. 6% 4%
Assume the forward rate of the Swiss franc is 0.44 and the spot rate of the Swiss franc is 0.42. If Parker Company uses a money market hedge, what equivalent amount could it receive in 360 days?
101,904
101,923
88,769
84,919
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