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Starbucks Inc. has Japanese yen 10 million payables due in 60 days and the company has the following information about the forward rates quoted in
Starbucks Inc. has Japanese yen 10 million payables due in 60 days and the company has the following information about the forward rates quoted in the Bank of America. What will be the dollar amount cost for the 10 million yen payables if the company uses the forward market for hedging?
Bank of America Forward rates (Japanese yen)Bid rateAsk rate30 day $0.0091/yen$0.0092/yen 60 day $0.0093/yen$0.0095/yen
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