Problem 13:

Problem 13 Intro Your company expects to receive 200,000 euros in one year from exporting to France. Consider the following information about the U.S. and Brazil: U.S. France Expected inflation rate 2% 5% Nominal interest rate 3.4% 4.4% Spot rate $1.04 per euro Part 1 | Attempt 1/10 for 10 pts. How much will your company receive if your company hedges its receivables and interest rate parity holds (in $)? 0+ decimals SubmitPart 2 | Attempt 1/10 for 10 pts. How much will your company receive if your company does not hedge its receivables and the international Fisher effect holds (in $)? 0+ decimals Submit