Question
If an importer buys 500 bottles of wine from France at a cost of 19 Euros each and sells them in the U.S. for $27.00
If an importer buys 500 bottles of wine from France at a cost of 19 Euros each and sells them in the U.S. for $27.00 each, what will the profit and profit margin be in USD if the payment is due in 6 months. The spot rate is 1.12 USD/EUR and the importer has a 6 month forward contract where the importer will pay the bank 9500 Euros and they will give him USD. The forward rate is 1.09 USD/EUR.
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Financial and Managerial Accounting Using Excel for Success
Authors: James Reeve, Carl S. Warren, Jonathan Duchac
1st edition
978-1111993979
