Assume that Parker Company will receive SF200,000 in 360 days. Assume the following interest rates:

U. S.

Switzerland

360-day borrowing rate
7%

5%

360-day deposit rate
6%

4%

Assume the forward rate of the Swiss franc is $.50 and the spot rate of the Swiss franc is $.48. If Parker Company uses a money market hedge, it will receive in 360 days.

a.
$92,307

b.
$96,914

c.
$101,904

d.
$101,923

e.
$98,769

b.  $96,914

Explanation:

360-day borrowing rate = 5%

spot rate = 0.48

360-day deposit rate  = 6%

Borrow at the rate of 5% to get

SF200,000/1.05 = $190,476.19

Convert at the spot rate of $0.48 to get

190,476.19*0.48 = $91,428.57

Invest at the interest rate of 6% to get

91,428.57/1.06 = 96,914.28

Therefore, Parker Company will receive $96,914 in 360 days.

like poles repel so keep pushing north to north and repels funny to see this

answer: at 24 february, 2014 the population gets twice of its initial population.

explanation:

since we have given that

the population for alpha city, t years after january 1, 2004 is given as

first we find out the initial population, i.e. t=0,

so, our quadratic equation becomes,

according to question, we have said that if the population has twice its initial population, then it becomes

so, time taken to reach this above mentioned population is given by

now, we know that time can't be negative so, we take t=9.149 years.

hence, at 24 february, 2014 the population gets twice of its initial population.