A Tanzanian company is due to receive US$ $100,000$ in $3$

months time. The company is worried that Tshs will

appreciate in $3$ months time so decided to take forward

rate contract with Bank.

$$ You are given the following rates;

$$ Spot rate Tshs$/$US$ $2,2902,345$

$3$ months forward Tshs$/$US$ $2,1942,295$

$$ Required

$$ Determining today value

$$ How much the coy will receive in Tshs in $3$ months time

$$ Calculate the guaranteed profit if cost of sales is Tshs

$90,000,000$

$$ Calculate Break$-$Even exchange rate