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Social Science Clinic => Business => Finance => Topic started by: 123654777 on Jul 9, 2019

Title: IBM enters into a forward contract to purchase 200,000 euros at a rate of $1.50/euro one year from ...
Post by: 123654777 on Jul 9, 2019

IBM enters into a forward contract to purchase 200,000 euros at a rate of $1.50/euro one year from today.  If the spot exchange rate is $2/euro one year later, what is the dollar amount that IBM must pay to receive the euros.
◦ $200,000
◦ $400,000
◦ $225,000
◦ $300,000

Title: IBM enters into a forward contract to purchase 200,000 euros at a rate of $1.50/euro one year from ...
Post by: SAUXC on Jul 9, 2019

$300,000

Title: IBM enters into a forward contract to purchase 200,000 euros at a rate of $1.50/euro one year from ...
Post by: 123654777 on Jul 9, 2019

TY

Title: IBM enters into a forward contract to purchase 200,000 euros at a rate of $1.50/euro one year from ...
Post by: SAUXC on Jul 9, 2019

You're welcome