The Forward Rate of the Swiss Franc Is

question 55

Multiple Choice

The forward rate of the Swiss franc is $.50.  The spot rate of the Swiss franc is $.48.  The following interest rates exist:

You need to purchase SF200,000 in 360 days.  If you use a  money market hedge,the amount of dollars you need in 360 days is:

• A) $101,904.
• B) $101,923.
• C) $98,770.
• D) $96,914.
• E) $92,307.

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Definitions:

Indirect Compensation

Benefits provided to employees that are not part of their direct salary, such as health insurance, retirement plans, or employee assistance programs.

Workers' Compensation Acts

Laws that provide financial and medical benefits to employees who are injured or become ill as a direct result of their job.

Employer-Sponsored

Refers to benefits or programs provided by an employer to support the well-being of their employees, such as health insurance or retirement plans.

Indirect Compensation

Benefits provided to employees that do not include direct payment, such as health insurance, retirement plans, and paid time off.