Multiple Choice
Suppose Alcoa has a payable of FF 1 million due in one year. Alcoa's cost of the payable using a money market hedge is ????? and its cost using a forward market hedge is ?????.
A) $173,900; $177,470
B) $174,925; $176,300
C) $176,671; $172,900
D) $178,937; $174,700
Correct Answer:
Verified
Correct Answer:
Verified
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