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check Answer The forward rate of the Swiss franc is $. The spot rate of the Swiss franc is $0. The following interest rates exist:

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The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $0.46. The following interest rates exist:

 

                                                              U.S.                Switzerland

     360‑day borrowing rate                     0.05                        .05

     360‑day deposit rate                          .06                        0.02

 

     You need to purchase SF200,000 in 360 days. If you use a money market hedge, the amount of dollars you need in 360 days is:


Answer=94,705.88

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