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( 6 points ) IBM US Commercial Computer Operations sold a state - of - the - art mainframe computer system to the Institute of

(6 points) IBM US Commercial Computer Operations sold a state-of-the-art mainframe computer system to the Institute of Molecular Pathology and Immunology of the University of Porto in Portugal on credit and invoiced 10 million payable in six months. Currently, the six-month forward exchange rate is $1.10/ and the Treasury Department's foreign exchange analyst for IBM predicts that the spot rate is likely to be $1.05/ in six months.
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