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Calculate the amount of US dollars that NY Co. will need in 1 year to make its payment. New York Co. has payables of 10
Calculate the amount of US dollars that NY Co. will need in 1 year to make its payment.
New York Co. has payables of 10 million Australian dollars (AUD) in 1 year. New York Co plans to hedge its exposure with a forward contract that it will arrange today. Assume Interest Rate Parity (IRP) holds. Following information is available. One-year nominal rate of interest One-year expected inflation Spot exchange rate U.S.A. Australia 4% 10% 2% 8% USD0.60/AUDStep by Step Solution
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