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If you instead want to use a money market hedge your exposure, what steps would...

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If you instead want to use a money market hedge your exposure, what steps would you take to create one? borrow euros, convert to dollars, invest in dollars borrow dollars, convert to euros, invest in euros borrow dollars, convert to euros, invest in euros, then sell euros for dollars None of the above. QUESTION 20 Now assume that you implement a money market hedge. Your firm can borrow euros at 2%, or invest in euros at 1% annual rates. You can borrow US\$ at 4% or invest in US\$ at 3%. Assume annual compounding and that 60 days is 1/6 th of a year. Which of the following is your approximate total cash flow if the euro depreciates 10% ? $24,763,897$24,925,497$27,551,441$27,694,996 None of the above

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