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the forward rate of the swiss franc is $.50. the spot rate of the swiss franc is $.48. the following interest rates exist: you need to purchase sf200,000 in 360 days. if you use a money market hedge, the amount of dollars you need in 360 days is: a. $92,307. b. $96,914. c. $98,770. d. $101,904. e. $101,923.

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gauravsingh23VT

If you use a money market hedge, the amount of dollars you need in 360 days is $96,914. Hence, option B is correct.

What is forward rate?

A forward rate is the settlement price for a transaction that won't take place until a later time. The bond market uses the phrase "forward rate," which is determined using the relationship between interest rates and maturities, to refer to the effective yield on a bond, often U.S. Treasury bills.

A forward rate is the interest rate that will be applied to a loan or investment made in the future. The forward rate is a crucial tool for predicting future interest rates and safeguarding against changes in those rates.

Thus, option B is correct.

For more information about forward rate, click here:

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