Exhibit 11-1
$\begin{array}{lll}
& \text { U.S. } & \text { Jordan } \
360 \text {-day borrowing rate } & 6 \% & 5 \% \
360 \text {-day deposit rate } & 5 \% & 4 \%
\end{array}$

-Refer to Exhibit 11-1. Pablo Corp. will need 150,000 Jordanian dinar (JOD) in 360 days. The current spot rate of the dinar is $1.48, while the 360-day forward rate is $1.46. What is Pablo's cost from implementing a money market hedge (assume Pablo does not have any excess cash)?
A) $224,135.
B) $226,269.
C) $224,114.
D) $223,212.

Question

Exhibit 11-1
 $\begin{array}{lll} 
& \text { U.S. } & \text { Jordan } \
360 \text {-day borrowing rate } & 6 \% & 5 \% \
360 \text {-day deposit rate } & 5 \% & 4 \%
\end{array}$

-Refer to Exhibit 11-1. Pablo Corp. will need 150,000 Jordanian dinar (JOD) in 360 days. The current spot rate of the dinar is $1.48, while the 360-day forward rate is $1.46. What is Pablo's cost from implementing a money market hedge (assume Pablo does not have any excess cash)?
A) $224,135.
B) $226,269.
C) $224,114.
D) $223,212.

Quizplus · Accepted Answer

The Answer of Exhibit 11-1
 $\begin{array}{lll} 
& \text { U.S. } & \text { Jordan } \
360 \text {-day borrowing rate } & 6 \% & 5 \% \
360 \text {-day deposit rate } & 5 \% & 4 \%
\end{array}$

-Refer to Exhibit 11-1. Pablo Corp. will need 150,000 Jordanian dinar (JOD) in 360 days. The current spot rate of the dinar is $1.48, while the 360-day forward rate is $1.46. What is Pablo's cost from implementing a money market hedge (assume Pablo does not have any excess cash)?
A) $224,135.
B) $226,269.
C) $224,114.
D) $223,212.

Exhibit 11-1 -Refer to Exhibit 11-1