A firm has a payable of 700,000.00. They hedge this exposure with a forward participation...
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Finance
A firm has a payable of 700,000.00. They hedge this exposure with a forward participation contract with a guaranteed rate of $1.6429/ and a participation rate of 50%. If at the time of payment the spot price ends up equal to $1.7579/, how much will the firm have to pay?
Group of answer choices
$1,109,780
$1,150,030
$1,230,530
$1,190,280
None of the alternatives
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