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Assume Scarlett Corporation, a US-based MNC, invests 2,500,000 Zambian kwacha (ZMK) for a one-years period at a nominal interest of 9 percent. At the time
Assume Scarlett Corporation, a US-based MNC, invests 2,500,000 Zambian kwacha (ZMK) for a one-years period at a nominal interest of 9 percent. At the time the loan is extended, the spot rate of the kwacha is USD 0.00060. If the spot rate of the kwacha in one year is USD 0.00056., the dollar amount initially invested in Zambia is USD___, and the USD__ are paid out after one year.
1,500; 1,526
1,526; 1,500
1,500; 1,400
1,400; 1,500
none of the above
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