Question
13.) IMXP Corp. enters into a 30-day forward exchange contract to buy 113,540,000 yen for $100,000. Which of the following statements is true concerning this
13.) IMXP Corp. enters into a 30-day forward exchange contract to buy 113,540,000 yen for $100,000. Which of the following statements is true concerning this transaction?
Select one:
a. The spot exchange rate in 30 days will be 113.54 yen per dollar.
b. IMXP will receive 113,540,000 yen today and pay $100,000 30 days from now.
c. IMXP will pay $100,000 and receive 113,540,000 yen 30 days from now.
d. IMXP will pay $100,000 today and receive 113,540,000 yen 30 days from now.
14.) In addition to those risks faced by domestic corporations, multinational corporations face
Select one:
a. exchange risk and political risk.
b. All domestic and multinational corporations face similar risk profiles.
c. political risk.
d. exchange risk.
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