U.S.borrowing Rate for 1 Year = 9.5

question 11

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 its FF 3 million receivable if it executes a forward contract today?

• A)$518,700
• B)$524,100
• C)$528,900
• D)$532,410

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Definitions:

Cultural Diffusion

The spread of cultural beliefs and social activities from one group to another, often leading to cultural assimilation or changes.

Homogenization

The process through which diverse elements are blended into a uniform mixture, often used to describe cultural or biological assimilation and standardization.

Social Movements

Collective, organized efforts aimed at promoting or resisting changes in society, often driven by grassroots activism.

Institutions

Established organizations or systems of rules and norms that structure societal interactions, such as legal systems, education, and economic markets.