Question
A U.S. company has committed to pay 8 million kronor to a Swedish company in one year. What is the cost (in present value) of
A U.S. company has committed to pay 8 million kronor to a Swedish company in one year. What is the cost (in present value) of covering this liability by buying kronor forward? The Swedish interest rate is .4%, and exchange rates are shown in Table 27.1. Cost = ?
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Succeeding in Business with Microsoft Excel 2013 A Problem Solving Approach
Authors: Debra Gross, Frank Akaiwa, Karleen Nordquist
1st edition
978-1285099149, 9781285963969, 1285099141, 1285963962, 978-1285715346
