Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm and gave the Swiss client a choice of paying ei

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Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm and gave the Swiss client a choice of paying ei

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Suppose That Baltimore Machinery Sold A Drilling Machine To A Swiss Firm And Gave The Swiss Client A Choice Of Paying Ei 1
Suppose That Baltimore Machinery Sold A Drilling Machine To A Swiss Firm And Gave The Swiss Client A Choice Of Paying Ei 1 (12.96 KiB) Viewed 47 times
Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm and gave the Swiss client a choice of paying either $14,000 or SF21,000 in three months. Baltimore Machinery effectively gave the Swiss client a free option to buy up to $14,000 using Swiss francs. What is the "implied" exercise exchange rate? (Round your answer to 4 decimal places.) Implied exercise rate
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