U.S.borrowing Rate for 1 Year = 9.5

question 41

Multiple Choice

U.S.borrowing rate for 1 year = 9.5%
U.S.deposit rate for 1 year = 8.7%
French borrowing rate for 1 year = 11.3%
French deposit rate for 1 year = 10.2%
French franc spot quote = $0.1763-78
French franc 1-year forward quote = $0.1729-47
-What value can Alcoa lock in for a receivable of FF 3 million due in one year if it executes a money market hedge today?

• A)$525,540
• B)$516,545
• C)$530,012
• D)$520,940

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Definitions:

Group Work

A collaborative process where individuals come together to achieve specified objectives, often facilitated by a guide or leader.

Diverse Population

Refers to a group of individuals with varied characteristics such as cultural, ethnic, racial, sexual orientation, and socio-economic backgrounds.

Diagnostic Term

A label or category used in healthcare and psychology to describe a specific condition or set of symptoms based on standard criteria.

Food Intake

The consumption of food by an organism or individual, key for sustenance and health.