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Suppose Alcoa in 1995 Had a Payable of FF 1

Question 35

Multiple Choice

Suppose Alcoa in 1995 had 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

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