Question: Please use the following information to answer the question below: A US firm's Accounts Payables due in 1 year is CHF 10,000,000 Current Spot rate

Please use the following information to answer the question below: A

Please use the following information to answer the question below: A US firm's Accounts Payables due in 1 year is CHF 10,000,000 Current Spot rate for CHF is (SR): S1.20 Annual interest rate in US is (Rh) Annual interest rate in Switzerland is (Rf): 2% Suppose the firm wants to set up a money market hedge to meet their payables in USD in one year. Today, the firm needs to borrow invest 5% and CHF9,803,922; USD 10,000,000 USD 11.764,706: CHF 9.803,922 USD 9.803,922: CHF 11.764,706 CHF 10,000,000: USD 11.764,706

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