Question 52 3 points Save Answer Your firm is a U.K.-based importer of bicycles. You have placed an order with a Swiss firm for SFr. 1,000,000 worth of bicycles. Payment (in Swiss francs) is due in 12 months. Use a money market hedge to redenominate this one-year receivable into a pound-denominated receivable with a one-year maturity. Contract Size Country U.S. $ equiv. Currency per U.S. $ 10,000 Britain (pound) $ 1.9600 E 0.5102 interest APR 12 months forward $ 2.0000 E 0.5000 rates 10,000 Euro $ 1.5600 0.6410 is = = 196 0.6250 = 296 12 months $ 1.6000 forward SFr. 10,000 . 10,000 Swiss franc $ 0.9200 SFr. 1.0870 IE = 396 12 months forward $ 1.0000 SFr. 1.0000 isFr. = 496 The following were computed without rounding. Select the answer closest to yours. O 500,000 O 464,874.41 O 446,730.77 O 509,900.99 Question 52 3 points Save Answer Your firm is a U.K.-based importer of bicycles. You have placed an order with a Swiss firm for SFr. 1,000,000 worth of bicycles. Payment (in Swiss francs) is due in 12 months. Use a money market hedge to redenominate this one-year receivable into a pound-denominated receivable with a one-year maturity. Contract Size Country U.S. $ equiv. Currency per U.S. $ 10,000 Britain (pound) $ 1.9600 E 0.5102 interest APR 12 months forward $ 2.0000 E 0.5000 rates 10,000 Euro $ 1.5600 0.6410 is = = 196 0.6250 = 296 12 months $ 1.6000 forward SFr. 10,000 . 10,000 Swiss franc $ 0.9200 SFr. 1.0870 IE = 396 12 months forward $ 1.0000 SFr. 1.0000 isFr. = 496 The following were computed without rounding. Select the answer closest to yours. O 500,000 O 464,874.41 O 446,730.77 O 509,900.99