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:

Hemorrhage

The loss of blood from a broken blood vessel, either inside or outside the body.

Bacteria

Microscopic single-celled organisms that can be found in various environments, some of which are beneficial, while others can cause diseases.

Inflammation

A biological response of body tissues to harmful stimuli, such as pathogens, damaged cells, or irritants, characterized by redness, heat, swelling, and pain.