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Assume that you will be making a payment of TZS1,036,779 90 days from now. There is no forward market for Tanzanian Shillings, so you decide

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Assume that you will be making a payment of TZS1,036,779 90 days from now. There is no forward market for Tanzanian Shillings, so you decide to engage in a money market hedge. The 90 day periodic rate for TZS is 2.02%. The current spot rate is TZS2,077/USD. What is the USD amount that you will use for the hedge? Note: Make sure to round your intermediate steps and final answer to four decimal places. Previous Next

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