Question: Please show work. CHALLENGE: HEDGING A/R RISK ABC Co. will receive 350,000 Jordanian dinar (JOD) in 1 year. The current spot rate of the dinar

Please show work. CHALLENGE: HEDGING A/R RISK ABC Co. will receive 350,000 Please show work.

CHALLENGE: HEDGING A/R RISK ABC Co. will receive 350,000 Jordanian dinar (JOD) in 1 year. The current spot rate of the dinar is $1.41, while the 360-day forward rate is $1.44. How much will the company have in one year after implementing a forward or money market hedge? U.S. 6% 5% Jordan 360-day borrowing rate 360-day deposit rate 5% 4%

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