Invested in the german money market

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A U.S. Company has a 40,000 euro loan in Germany that must be paid in 30 days. Assume the 30-day money market rates in the U.S. and Germany are both 2% for lending and 3.5% for borrowing. The current exchange rate is 1.55 dollars per euro. If the company wants to complete a money-market hedge, how many euros will be invested in the German money market?

Reference no: EM13768939

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