The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $.48. The following interest rates exist:

You need to purchase SF200,000 in 360 days. If you use a money market hedge,the amount of dollars you need in 360 days is:
A) $101,904.
B) $101,923.
C) $98,770.
D) $96,914.
E) $92,307.

Question

The forward rate of the Swiss franc is $.50.  The spot rate of the Swiss franc is $.48.  The following interest rates exist:

You need to purchase SF200,000 in 360 days.  If you use a  money market hedge,the amount of dollars you need in 360 days is:
A) $101,904. 
B) $101,923. 
C) $98,770. 
D) $96,914. 
E) $92,307.

Quizplus · Accepted Answer

The Answer of The forward rate of the Swiss franc is $.50.  The spot rate of the Swiss franc is $.48.  The following interest rates exist:

You need to purchase SF200,000 in 360 days.  If you use a  money market hedge,the amount of dollars you need in 360 days is:
A) $101,904. 
B) $101,923. 
C) $98,770. 
D) $96,914. 
E) $92,307.

The Forward Rate of the Swiss Franc Is