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Tandon Corp. USA exports fitbits to Turkey worth Turkish Lira 100,000 due in 180 days. The firm wants to hedge its exchange rate risk using
Tandon Corp. USA exports fitbits to Turkey worth Turkish Lira 100,000 due in 180 days. The firm wants to hedge its exchange rate risk using a forward contract. The bid ask spot rate quoted is Lira 3.5800-3.5890/$ and the 180-day bid ask forward rate quoted is Lira 3.5900-3.5970/$. What will be Tandon Corporation's receipts in dollars in 180 days at maturity from the forward hedge?
a.$27,855.15
b.$359,000
c.$27,932.96
d.$27,800.95
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