Your company can get yen loans for 2.0%. Dollar rates on the same loans are 4.5%. The spot yen per dollar exchange rate is 104. The forward rates for years 1 thru 4 are, 101.51, 99.08, 96.71, and 94.40, respectively
What is the present value of the market-maker's net cash flow if spot rates are 102 instead?
A)
$188.59
B)
$206.43
C)
$219.96
D)
$242.06
Answer:
A
Business
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