Question
DKNY owes Euro 170 million in 60 days for a recent shipment of Spanish textiles. It faces the following exchange rates: Spot rate: Euro 0.89/$
DKNY owes Euro 170 million in 60 days for a recent shipment of Spanish textiles. It faces the following exchange rates:
Spot rate: Euro 0.89/$
Forward rate (60 days) Euro 0.91/$
Forward rate (60 days) Euro 0.93/$
What dollar cost of the payable can DKNY lock in using the forward contract?
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Public Finance
Authors: Harvey S. Rosen
5th Edition
025617329X, 978-0256173291
