Exchange rate is currently $1.25 US per 1 Euro. Interest rate is 2% in the US and 1% in Eurozone. A bank is long a futures contr
act on 1,000,000 Euro with F= $1.20 per unit, maturing in one year. What position should the bank take to hedge the currency risk? a. Borrow $1,237,624 US
b. Invest $990,099 U.S.
c. Invest $1,237,624 US
d. Borrow $990,099 US
based on the economics , the one that should be the most influential in making the decisions is : the value of resources The value of resources refer the one's capability in spending their resource to get what they want. An entity with low amount of resources , tend to be more careful about how they spent their resource Hope this helps. Let me know if you need additional help!
Answer: If the required return is 11 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16.)
