Click here to go to the answer ↓

Author Question: IBM enters into a forward contract to purchase 200,000 euros at a rate of $1.50/euro one year from ...  (Read 13 times)

123654777

  • Sr. Member
  • ****
  • Posts: 320
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

Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by 123654777 on Jul 9, 2019

SAUXC

  • Full Member
  • ***
  • Posts: 178
$300,000


SAUXC

  • Full Member
  • ***
  • Posts: 178

 

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.


Hey there, how can we help?

Homework Clinic is a free homework helpline for anyone who signs-up. All posted questions are reviewed and answered by dedicated volunteers (students and teachers) from around the globe.

▶️ Video: Contraction and Relaxation Animation

For a complete list of videos, visit our video library