James is a U.S. citizen, and he is required to make a payment of 2,111,000 Malaysian Ringgit
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James is a U.S. citizen, and he is required to make a payment of 2,111,000 Malaysian Ringgit (MYR) to a company in a year. The interest rate in Malaysia is 14% p.a. and the interest rate in the United States is 13% p.a.. A Malaysian ringgit currently sells for USD 3.6131 and is expected to trade at USD 3.9086 in a year. If James uses the money market hedge, how much U.S. dollars should he borrow?
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
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