Your firm is a uk based exporter of bicycles you have

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34Your firm is a U.K.-based exporter of bicycles. You have sold an order to a Swiss firm for SFr. 1,000,000 worth of bicycles. Payment from the Swiss firm (in Swiss francs) 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. ContractSizeCountryU.S. $ equiv.Currency per U.S. $interestratesAPRi$=1%i=2%i£=3%iSFr=4%£10,000Britain (Pound) $1.9600£0.510212 Months Forward$2.0000£0.5000€ 10,000Euro $1.5600€ 0.641012 Months Forward$1.6000€ 0.6250SFr. 10,000Swiss Franc $0.9200SFr. 1.087012 Months Forward$1.0000SFr. 1.0000The following were computed without rounding. Select the answer closest to yours.a)£500,000b)£464,874.41c)£446,730.77d)£509,900.99Answer: b)
35Your firm is a U.K.-based importer of bicycles. You have placed an order with a Swiss firm for SFr. 1,000,000 worth of bicycles. Payment (in Swiss francs) 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. ContractSizeCountryU.S. $ equiv.Currency per U.S. $interestratesAPRi$=1%i=2%i£=3%iSFr=4%£10,000Britain (Pound) $1.9600£0.510212 Months Forward$2.0000£0.5000€ 10,000Euro $1.5600€ 0.641012 Months Forward$1.6000€ 0.6250SFr. 10,000Swiss Franc $0.9200SFr. 1.087012 Months Forward$1.0000SFr. 1.0000The following were computed without rounding. Select the answer closest to yours.
36Your firm is a Swiss exporter of bicycles. You have sold an order to a British firm for£1,000,000 worth of bicycles. Payment from the British firm (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. ContractSizeCountryU.S. $ equiv.Currency per U.S. $interestratesAPRi$=1%i=2%i£=3%iSFr=4%£10,000Britain (Pound) $1.9600£0.510212 Months Forward$2.0000£0.5000€ 10,000Euro $1.5600€ 0.641012 Months Forward$1.6000€ 0.6250SFr. 10,000Swiss Franc $0.9200SFr. 1.087012 Months Forward$1.0000SFr. 1.0000The following were computed without rounding. Select the answer closest to yours.
37Your firm is a Swiss importer of bicycles. You have placed an order with a British firm for £1,000,000 worth of bicycles. Payment (in pounds sterling) is due in 12 months. Use a money market hedge to redenominate this one-year pound denominated payable into a Swiss franc-denominated payable with a one-year maturity.ContractSizeCountryU.S. $ equiv.Currency per U.S. $interestratesAPRi$=1%i=2%i£=3%iSFr=4%£10,000Britain (Pound) $1.9600£0.510212 Months Forward$2.0000£0.5000€ 10,000Euro $1.5600€ 0.641012 Months Forward$1.6000€ 0.6250SFr. 10,000Swiss Franc $0.9200SFr. 1.087012 Months Forward$1.0000SFr. 1.0000The following were computed without rounding. Select the answer closest to yours.

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