Question: Please use this information to answer the question below: A US firm's expected Accounts Receivables in Canada due in 1 year: CAD 20000000 Current Spot

Please use this information to answer the question below: A US firm's expected Accounts Receivables in Canada due in 1 year: CAD 20000000

Current Spot Rate (SR) for CAN: USD 0.65

Annual interest rate in US (Rh) : 5%

Annual interest rate in Canada (Rf): 3%

If the US firm wants to set up a money market hedge for their CAN receivables, today it should invest:

CAN 13,000,000

USD 12,621,359

USD 13,252,427

CAN 19,417,476

also if the us firm wants to set up a money market hedge for their CAN receivables, today it should borrow:

CAN 13,000,000

USD 12,621,359

USD 13,252,427

CAN 19,417,476

Please use this information to answer the question below: A US

Please use this informatinn o. If the US firm wants to set up a money market hedge for their CAN receivables, today it should invest: CAN 13,000,000 USD 12,621,359 USD 13,252,427 CAN 19,417,476

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