Question
Jones Inc, a U.S. firm, has a Canadian dollar payable of CAD 500,000, due in 6 months. The spot rate is CAD 1.05 / USD
Jones Inc, a U.S. firm, has a Canadian dollar payable of CAD 500,000, due in 6 months. The spot rate is CAD 1.05 / USD and the 6-month forward rate is CAD 1.09 / USD. If Jones Inc were to execute a forward market hedge, it would:
Group of answer choices
buy Canadian dollars 6 months forward and pay USD 458,716
buy Canadian dollars 6 months forward and pay USD 476,190
sell Canadian dollars 6 months forward and receive USD 525,000
sell Canadian dollars 6 months forward and receive USD 476,190
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Accounting Ledger Book
Authors: Alpha Planners Publishing
1st Edition
B09VWKPJSG, 979-8432472564
