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Multinational Financial Management Problem 2. Assume the following information: U.S. deposit rate for 1...

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Finance

Multinational Financial Management Problemimage

2. 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 6 months Swiss franc spot rate 2% 4% 0.2% 2% CHF 0.9580/$ CHF 0.9675/$ Assume that Ford exported to a dealership in Zurich, Switzerland and invoiced in Swiss francs and expects to receive 600,000 Swiss Francs (CHF) in 6 months. c) What would Ford receive if it hedged its exposure with a forward contract? d) On a time-adjusted basis so that it is comparable to the forward above, what would Ford receive if it hedged its exposure with a money market hedge

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