Assume That Parker Company Will Receive SF200,000 in 360 Days

question 60

Multiple Choice

Assume that Parker Company will receive SF200,000 in 360 days.  Assume the following interest rates:

Assume the forward rate of the Swiss franc is $.50 and the spot rate of the Swiss franc is $.48.  If Parker Company uses a money market hedge,it will receive _______ in 360 days.

• A) $101,904
• B) $101,923
• C) $98,769
• D) $96,914
• E) $92,307

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Definitions:

Verbs

Words that describe actions, states, or occurrences, and form the main part of the predicate of a sentence.

Nouns

Words that name people, places, things, or ideas and serve as the subject of a sentence in grammar.

Phonological Loop

A component of the working memory model that deals with auditory information and preserves the order of this information.

Visuospatial Sketchpad

A component of working memory responsible for the manipulation and temporary storage of visual and spatial information.