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Author Question: IBM enters into a forward contract to purchase 100,000 euros at a rate of $1.60/euro one year from ...  (Read 12 times)

wenmo

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IBM enters into a forward contract to purchase 100,000 euros at a rate of $1.60/euro one year from ...
« 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

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Marked as best answer by wenmo on Jul 9, 2019

coreycathey

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IBM enters into a forward contract to purchase 100,000 euros at a rate of $1.60/euro one year from ...
« Reply #1 on: Jul 9, 2019 »
$160,000
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