A US firm needing to borrow $200 million short term faces the following market information. The Spot
Fantastic news! We've Found the answer you've been seeking!
Question:
A US firm needing to borrow $200 million short term faces the following market information. The Spot rate for Swiss Francs is $.4968/SF, or SF2.0161/$ The Forward Rate for Swiss Francs is $.5024/SF, or SF1.9889/$ Swiss short-term rate is 7% US short term rate is 9.90%
In which market should it borrow and why?
What is the strategy?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259722615
9th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Posted Date: