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Your Company Just Received a $500,000 Cash Remittance from Its

Question 26

Multiple Choice

Your company just received a $500,000 cash remittance from its British subsidiary. If the risk-free one-year T-bill rate is 4.5% and the current exchange rate is $1.45/£, and the one-year forward rate is $1.44/£, then the present value of the remittance is ________.


A) $725,000
B) $500,000
C) $693,780
D) $478,469

Correct Answer:

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