Assume the Following Information: U

Multiple Choice

Assume the following information: U.S. deposit rate for 1 year
=
11%
US. borrowing rate for 1 year
=
12%
Swiss deposit rate for 1 year
=
8%
Swiss borrowing rate for 1 year
=
10%
Swiss forward rate for 1 year
=
$) 40
Swiss franc spot rate
=
$) 39
​
Also assume that a U.S. exporter denominates its Swiss exports in Swiss francs and expects to receive SF600,000 in 1 year.
​
Using the information above, what will be the approximate value of these exports in 1 year in U.S. dollars given that the firm executes a forward hedge?

A) $234,000
B) $238,584
C) $240,000
D) $236,127