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ABC Co. is based in the New York. Recently the company exports products to a Austria firm and will receive payment of 205,000 in three
ABC Co. is based in the New York. Recently the company exports products to a Austria firm and will receive payment of 205,000 in three months. On June1, the spot rate of the euro was$1.12, and the 3-month forward rate was $1.10. On June 1, ABC negotiated a forward contract with a bank to sell 205,000 forward in three months. Based on the spot rate of the euro on September 1 is $1.15. ABC will receive $_________ for the euros.
A.220,000
B.230,000
C.224,000
D.225,500
Please show the calculations. TQ.
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