Question
IMXP Corp. enters into a 30-day forward exchange contract to buy 113,540,000 yen for $100,000. Which of the following statements is true concerning this transaction?
IMXP Corp. enters into a 30-day forward exchange contract to buy 113,540,000 yen for $100,000. Which of the following statements is true concerning this transaction?
a. IMXP will pay $100,000 and receive 113,540,000 yen 30 days from now.
b. IMXP will pay $100,000 today and receive 113,540,000 yen 30 days from now.
c. The spot exchange rate in 30 days will be 113.54 yen per dollar.
d. IMXP will receive 113,540,000 yen today and pay $100,000 30 days from now.
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
