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An American firm is owed SFr 6,000,000.00 payable in one year. The current spot is $1.3750/SFr. A Swiss bank is paying 2
Posted: Sun May 08, 2022 10:32 am
by answerhappygod
- An American Firm Is Owed Sfr 6 000 000 00 Payable In One Year The Current Spot Is 1 3750 Sfr A Swiss Bank Is Paying 2 1 (18.01 KiB) Viewed 35 times
An American firm is owed SFr 6,000,000.00 payable in one year. The current spot is $1.3750/SFr. A Swiss bank is paying 2.50% on deposits or will lend at 6.00%. A U.S.bank is paying 2.00% or will lend at 3.00%. The firm will hedge this exposure with money market hedging. How much will they get in one year? $7.938.679.25 O $8,016,509.44 $8.497.500.00 None of the alternatives $7,783,018.87