Some multinational corporations and banks run recruiting talent programs that offer about two years of diversified rotations in various business units. This recruiting system is a great opportunity to experience of breadth of rules across the business. Before taking over a fixed position in the marketing team, there is a rotation to the finance department. particularly you were assigned to the treasury team whose functions are cash management and funding. your mentor is a seasoned senior analyst who has 7-year working experience at the corporation ABC. she will be involved in your training and will give you feedback on the projects you would participate.

4. Foreign Exchange Market: By the end of your rotation, you were involved in some foreign exchange transactions done with clients in United Kingdom. ABC expects to receive GBP 1 million in six months, and it has agreed a forward contract to exchange the pounds for dollars. At the inception of the contract the spot exchange rate was of USD 1.2486 per GBP and the contract stipulates that the forward exchange rate is USD 1.2391 per GBP. How many dollars will ABC get in six months? (10 points)