Compaq computer has a pound1 million receivable that is, Financial Management

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Compaq computer has a pound1 million receivable that is

Compaq Computer has a £1 million receivable that is expects to collect in one year. Suppose the interest rate on the pound is 2.0% and the interest rate on the US dollar is 4%. If the currency exchange rate is $1.50/£, what value could Compaq lock in one year on this receivable money market hedge? Explain

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