Multiple Choice
Compaq Computer has a £1 million receivable that it expects to collect in one year. Suppose the interest rate on pounds is 15%. How could Compaq protect this receivable using a money market hedge?
A) borrow £1 million pounds today
B) lend £1 million pounds today
C) borrow £869,565 pounds today
D) lend £986,754 pounds today
Correct Answer:
Verified
Correct Answer:
Verified
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