FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A US-based exporter anticipated receiving 100 million EURO in six months, and took a long forward position, locking-in an exchange rate of $1.2/EURO. If six

A US-based exporter anticipated receiving 100 million EURO in six months, and took a long forward position, locking-in an exchange rate of $1.2/EURO. If six months later at maturity, the exporter calculates that she has made a profit of $21 million from the currency forward contract, the spot exchange rate at maturity must be __________ USD/EURO Round your final answers to TWO decimal points.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Full Guide To Bitcoin Investment

A Full Guide To Bitcoin Investment

Authors: J.b. Yupangco

1st Edition

8389911302, 978-8389911308

More Books

Students also viewed these Finance questions

Question

★★★★★
Why is the request-response technique improvement? Discuss the reasons an intruder may wish to prevent or delay the receipt of a message.

Answered: 1 week ago

Question

★★★★★
=+the inelastic portion) the supply curve must have shifted in fed order to generate the event described. In each case, show on the diagram the quantity effect and the price effect. a. Recent...

Answered: 1 week ago

Question

★★★★★
8. In Sections 24.4, 26.2, and 26.3, we demonstrated that a workers expectations of what her teammates were going to do were an important determinant of her (privately) optimal behavior. Suppose that...

Answered: 1 week ago

Question

★★★★★
(Two Temporary Differences, One Rate, Beginning Deferred Taxes, Compute Pretax Financial Income) The following facts relate to Mc Kane Corporation. 1. Deferred tax liability, January 1, 2010,...

Answered: 1 week ago

Question

★★★★★
Explain how triangular arbitrage works. Why is this important for vehicle currencies in global markets?

Answered: 1 week ago

Question

★★★★★
An employee receives a bonus of 1 0 0 0 IF: Either: The employee has a sales job and has sold more than 1 0 0 0 0 0 OR The employee is manager and has been with the company 2 years All other...

Answered: 1 week ago

Question

★★★★★
The following events occurred for Favata Company: a. Received $11,500 cash from owners and issued stock to them. b. Borrowed $8,500 cash from a bank and signed a note due later this year. c. Bought...

Answered: 1 week ago

Question

★★★★★
The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company's value under several possible growth scenarios and the...

Answered: 1 week ago

Question

★★★★★
Mrs. Porter's mother is a feisty, independent 86-year-old widow by the name of Mary Brown. Mary Brown still lives in her own home, with a few hours of home support twice a week. Mary comes into the...

Answered: 1 week ago

Question

★★★★★
2. Missing data, ROI. The following excerpted data were taken from a report published by retailing industry: Red Company Blue Company White Company Sales P6,000,000 P 4,800,000 P2 1,200,000 Net...

Answered: 1 week ago

Question

★★★★★
Maria works for a large, local company. She is an administrative assistant to the director of the Human Resources Department, the person who hires new employees. Many people come into Maria's office...

Answered: 1 week ago

Question

★★★★★
Media Skills: Blogging [LO-6] Read the following blog post and (a) analyze the strengths and weaknesses of each sentence and (b) revise it so that it follows the guidelines in this chapter....

Answered: 1 week ago

Question

★★★★★
Media Skills: Podcasting [LO-7] Youve recently begun recording a weekly podcast to share information with your large and far-flung staff. After a month, you ask for feedback from several of your...

Answered: 1 week ago

Question

★★★★★
Production schedule Media Skills: Writing Email Subject Lines [LO-4] Using your imagination to make up whatever details you need, revise the following email subject lines to make them more informative

Answered: 1 week ago

Previous Question Next Question