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Money market hedge of hershey inc

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Reference no: EM132097180

Problem: Hershey Inc. needs €1,180,000 in 30 days. Delaney can earn 0.03 annualized on a German security. The current spot rate for the euro is $1.00. Delaney can borrow funds in the U.S. at an annualized interest rate of .06.

Required:

If Delaney uses a money market hedge, how much should it borrow in the U.S.?

Reference no: EM132097180

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