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

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

You need to purchase SF 200,000 in 360 days. If you use a money market hedge, the amount of dollars you need in 360 days is:

SURNAME1 NameInstructorDateFinanceMoney market hedgeAmount to deposit200000/ (1+6%) =188,679. 25 Swiss francAmount in dollars 188679.25/spot rate188679.25/(1/0.5) Swiss franc=$94339.625

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