You Have Decided to Hedge Your Exchange-Rate Risk in Your

question 45

Multiple Choice

You have decided to hedge your exchange-rate risk in your U.S.-based firm by contracting forward to buy 500,000 Swiss Francs for delivery in one year.The current exchange rate is Sf1.6/$.The forward rate is Sf1.7/$(U.S.) .How much better (worse) off are you if you don't buy the forward contract and instead pay the spot rate in one year if it turns out to be Sf1.65/$?

• A)($14,245)
• B)($8,912)
• C)$8,912
• D)$27,472 current Dollar commitment =

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Religiously Historical Places

Sites that are significant due to their historical connections to a particular religion or spiritual belief system.

Major Religions

The world's largest and most widespread religions, usually having millions of followers, significant cultural influence, and extensive histories, such as Christianity, Islam, Hinduism, Buddhism, and Judaism.

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