(Answered) It computers purchased computer chips from computech a

Finance

IT computers purchased computer chips from computech, a French electronics and was billed FF250 million payable in three months. Currently the spot exchange rate is FF100/$ and the three months money market interest rate is 7% per annum in the US ,and 6% per annum in France. The management of IT computers decided to use the money hedge to deal with this France account payable.

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