Question
Hello, please I need someone to help me solve this problem step by step! in December 2005, the spot exchange rate for the British Pound
Hello, please I need someone to help me solve this problem step by step!
in December 2005, the spot exchange rate for the British Pound was $1.7188/ and the one-year forward rate was $1.8675/. Suppose that at the same time Luther Industries entered into a contract to purchase goods with a price of 375,000 to be delivered in one year. Simultaneously Luther entered into a one-year forward contract to purchase 375,000. At the time the contract payment was due, the spot exchange rate was $1.9975/. What is the amount of the payment in U.S. dollars that Luther Industries paid?
A) $700,312.50
B) $749,062.50
C) $644,550.00
D) $200,803.20
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