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Question 14 10 An American firm owes A$3,500,000.00 payable in one year. The current spot is $1.8000 / AS. An Australian
Posted: Sun May 08, 2022 10:38 am
by answerhappygod
- Question 14 10 An American Firm Owes A 3 500 000 00 Payable In One Year The Current Spot Is 1 8000 As An Australian 1 (19.42 KiB) Viewed 21 times
Question 14 10 An American firm owes A$3,500,000.00 payable in one year. The current spot is $1.8000 / AS. An Australian bank is paying 2.00% on deposits or will lend at 5.00%, A U.S. bank is paying 1.00% or will lend at 5.00% The firm would like to wedge this exposure with money market hedging. How much do they need to borrow today? $5,999,999.99 None of the alternatives $6,176,470.59 O A$3,333,333.33 O A$3,431,372.55