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Question 2 1 pts The interest rate in Angola is 15.87%. The interest rate in Lesotho is 25.10%. The currency in Lesotho is called the
Question 2 1 pts The interest rate in Angola is 15.87%. The interest rate in Lesotho is 25.10%. The currency in Lesotho is called the Loti. The currency in Angola is called a Kwanza. The current rate is 1 Loti equals 53.34 Kwanzas. A company in Angola will receive 2,230 Lotis 5 months from now. The company has an existing short forward contract where the 2,230 Lotis will be exchanged/sold at a rate of 1 Loti for 48.37 Kwanzas 5 months from now. What is the value of the existing forward in Kwanzas? Margin of error here: +/- 2%
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