Your Firm Is a U

question 40

Multiple Choice

Your firm is a U.K.-based importer of bicycles. You have placed an order with a Swiss firm for SFr. 1,000,000 worth of bicycles. Payment (in Swiss francs) is due in 12 months. Use a money market hedge to redenominate this one-year receivable into a euro-denominated receivable with a one-year maturity. The following were computed without rounding. Select the answer closest to yours.

• A)£500,000
• B)£464,874.41
• C)£446,730.77
• D)£509,900.99

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Definitions:

Left Hemisphere

The left side of the brain, known for controlling speech, comprehension, arithmetic, and writing, often referred to as the logical and analytical half.

Corpus Callosum

A wide, flat bundle of neural fibers beneath the cortex that connects the left and right cerebral hemispheres, facilitating interhemispheric communication.

Verbal Processing

The act of utilizing speech and language to think through and convey ideas, emotions, or information.

Left Hemisphere

The half of the brain commonly associated with analytical tasks, such as language, math, and logic.