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:

Bloodstream

The Bloodstream refers to the continuous flow of blood through the circulatory system, delivering nutrients and oxygen to cells and removing waste products.

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles.

Autonomic Nervous System

Part of the nervous system that controls involuntary body functions, such as heart rate, digestion, and respiration, divided into the sympathetic and parasympathetic nervous systems.

Parasympathetic Nervous System

Part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.