Assume the following information: U.S. deposit rate for 1 year U.S. borrowing rate for 1...
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Assume the following information: U.S. deposit rate for 1 year U.S. borrowing rate for 1 year Swiss deposit rate for 1 year Swiss borrowing rate for 1 year Swiss forward rate for 1 year $1.0962 Swiss franc spot rate $1.0585 Also assume that a U.S. exporter denominates its Swiss exports in Swiss francs and expects to receive SF250,000 in 1 year. Using the information above, compute the approximate value of these exports in 1 year in U.S. dollars given that the firm executes a forward hedge. O $264,625. O $262.125. O $255,750. O $274,050 = 4% = 5% = 6% -7%
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