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

Title: IBM enters into a forward contract to purchase 100,000 euros at a rate of $1.60/euro one year from ...
Post by: wenmo on Jul 9, 2019

IBM enters into a forward contract to purchase 100,000 euros at a rate of $1.60/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.
◦ $160,000
◦ $300,000
◦ $200,000
◦ $100,000

Title: IBM enters into a forward contract to purchase 100,000 euros at a rate of $1.60/euro one year from ...
Post by: coreycathey on Jul 9, 2019

$160,000