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At the end of 2002, the (1-year) interest rate was 1% in the U.S., and 26% in Argentina. Recall that at the same time, the spot rate for the Argentine currency was Peso 4.00/$. Yankee Burger expects sale revenues of 200 million Pesos in 2003 from its chain of restaurants in Argentina. These revenues will be collected at end of 2003.
Scrivi una recensione per "Speculation of Exchange Rate Risk and Hedging."
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