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An American importer of British fish owes the British exporting company a payment of USD100,000, due in three months. The following information is available: Spot
An American importer of British fish owes the British exporting company a payment of USD100,000, due in three months. The following information is available: Spot exchange rate (USD/GBP) 2.5975-2.6025 Three-month forward rate (USD/GBP) 2.6175-2.6225 If the British firm locked in a conversion rate using the 3-month forward contract quote, what amount would the British firm receive in GBP?
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