Question
The Walt Disney Company in the United States expects to receive $4 million from Mexico in 90 days. The current spot rate is $0.21/Mex$ and
The Walt Disney Company in the United States expects to receive $4 million from Mexico in 90 days. The current spot rate is $0.21/Mex$ and the 90 day forward rate is $0.17/Mex$. The expected future spot rate in 90 days is $0.19/Mex$. What is the expected U.S. dollar value of the fee? Please submit the number only in your answer in millions.
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
