General Motors is using a money-market hedge to protect an Lm 200 million receivable that...
60.1K
Verified Solution
Link Copied!
Question
Finance
General Motors is using a money-market hedge to protect an Lm 200 million receivable that will be received in one year. The U.S. interest rate is 5% and the lira interest rate is 14%. The spot rate moved from Lm 1293/$1 at the start of the year to Lm 1349/$1 at the end of the year. What dollar value can GM lock in for its Lm 200 million receivable today? (Round to the nearest $100)
$142,500 $148,200 $154,700 $147,900
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.