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(Transaction Exposure)Trident - A U.S.-based company, has concluded a sale of telecommunications equipment to Regency...

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Finance

(Transaction Exposure)Trident - A U.S.-based company, has concluded a sale of telecommunications equipment to Regency (U.K.). A total payment of 2,000,000 is due in 90 days. Given the following exchange rates and interest rates, the guaranteed dollar receipt from forward hedge is $ in 90 days. (No decimal numbers).
Assumptions
90-day AR in pounds
Spot rate, US$ per pound ($)
90-day forward rate, US$ per pound ($/)
3-month U.S. dollar investment rate
3-month U.S. dollar borrowing rate
3-month UK investment interest rate
3-month UK borrowing interest rate
Put options on the British pound: Strike rates,
US$/pound ($/)
Strike rate ($)
Put option premium
Strike rate ($)
Put option premium
Strike rate ($/)
Call option premium
Trident's WACC
Maria Gonzalez's expected spot rate in 90 days, US$ per pound ($/)
Value
\table[[2,000,000.00
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