2. Exchange rates (S28.1) Table 28.1 shows the three-month forward rate on the South African rand. a.

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2. Exchange rates (S28.1) Table 28.1 shows the three-month forward rate on the South African rand.

a. Is the rand at a forward discount or premium on the dollar?

b. What is the annual percentage discount or premium?

c. If you have no other information about the two currencies, what is your best guess about the spot rate on the rand three months hence?

d. Suppose that you expect to receive 100,000 rand in three months. How many dollars is this likely to be worth?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 09:01 AM

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2. Exchange rates (S28.1) Table 28.1 shows the three-month forward rate on the South African rand. a.

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Principles Of Corporate Finance

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