Suppose you observe an exchange rate of S($/SFr) = 0.85 (i. e., SFr 1 = $.85). The one-year forward rate is F1($/SFr) = 0.935 (i. e., SFr 1 = $.935). The annual interest rate is 5% in the U. S and 2% in Switzerland. A dollar-based investor can profit by borrowing , exchanging them for , investing in , and entering a one-year forward contract to .

Match the terms with their correct definition. terms: 1. accounts receivable 2. other receivables 3 debtor 4. notes receivable 5. maturity date 6. creditor definitions: a. the party to a credit transaction who takes on an obligation/payable. b. the party who receives a receivable and will collect cash in the future. c. a written promise to pay a specified amount of money at a particular future date. d. the date when the note receivable is due. e. a miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. f. the right to receive cash in the future from customers for goods sold or for services performed.