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please use clear explanation. thanks Honey Corp., an American wood retailer, buys wood from Bolivian producers. The total amount of this transaction is 950,000 Bolivian
please use clear explanation. thanks
Honey Corp., an American wood retailer, buys wood from Bolivian producers. The total amount of this transaction is 950,000 Bolivian boliviano due in 60 days. The spot rate is $18.5053/BOB. Given the currency instability of the boliviano, Honey Corp. decided to lessen financial risk with a forward contract. In these times, inflation is pretty high in Bolivia and amounts to 151.9% a year. Given the fact that inflation amounts 0.58% in the United States, what will be the future value in dollars of the 950,000 Bolivian in 60 daysStep by Step Solution
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