Assume the Following Information: U

question 41

Multiple Choice

Assume the following information: U.S. deposit rate for 1 year
=
11%
US. borrowing rate for 1 year
=
12%
Swiss deposit rate for 1 year
=
8%
Swiss borrowing rate for 1 year
=
10%
Swiss forward rate for 1 year
=
$) 40
Swiss franc spot rate
=
$) 39
​
Also assume that a U.S. exporter denominates its Swiss exports in Swiss francs and expects to receive SF600,000 in 1 year.
​
Using the information above, what will be the approximate value of these exports in 1 year in U.S. dollars given that the firm executes a forward hedge?

• A) $234,000
• B) $238,584
• C) $240,000
• D) $236,127

---

Definitions:

Wrong Medication

An error that involves administering or prescribing a medication that is not the correct one for the patient's condition or specifications.

Health Professions Act

Legislation designed to regulate the practice of health professions, protect public interest, and ensure competent and ethical practice among health professionals.

Anonymous Letter

A letter sent without disclosing the identity of the sender.