Solved

The Spot Rate Exchange Rate for Andromedan Pixels (ANP)is 3

Question 79

Multiple Choice

The spot rate exchange rate for Andromedan Pixels (ANP) is 3.00ANP/$.If the risk-free rate of return in Andromeda is 20% per annum while that in the U.S.is 3%,then what amount of U.S.dollars should you be able to convert 3,000,000 ANP into 1-year from now if you choose to begin hedging today?


A) $1,165,049
B) $1,000,000
C) $858,333
D) $833,333

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents