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For a recent month,the following payments matrix of interaffiliate cash flows was forecasted: The spot exchange rates are $1.20 = €1.00 and $2.00 = £1.00; affiliates get paid in home currency.Use multilateral netting to find the net payments to an from all parties. Which of the following is an accurate chart of their current situation?
Forward Market
A financial market in which participants can enter into contracts to buy or sell assets at a specified future date and price.
Spot Market
The Spot Market is a public financial market in which financial instruments or commodities are traded for immediate delivery.
Foreign Currency
The currency of another country, which is required for foreign trade and investment.
Hedge
An investment or action taken to reduce the risk of adverse price movements in an asset.
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