Question: Answer is correct if you could show how to solve, please. Thanks! 14. An American firm is owed SFr 1.200,000.00 payable in one year. The
14. An American firm is owed SFr 1.200,000.00 payable in one year. The current spot it $1.3333/SFr. A Swiss bank is paying 3.50% on deposits or will lend at 6.50%. A U.S. bank is paying 4.50% or will lend at 7.00%. The firm will hedge this exposure with money market hedging, How much will they get in one year? (a) $1,502,309.85 (b) $1,569,913.79 (c) $1.711,957.20 (d) $1,607,471.54 () None of the above
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