Question: Question 1 2.5 pts You are thinking about using a money market hedge to manage the risk of a 1,000,000 accounts receivable that is due

 Question 1 2.5 pts You are thinking about using a money

Question 1 2.5 pts You are thinking about using a money market hedge to manage the risk of a 1,000,000 accounts receivable that is due in 3 months. The annual investment rate is 4% while the borrowing rate is 8%. How much do you have to borrow or invest today? Borrow 990,099 Invest 990,099 Invest 980,392 Borrow 980,392

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