Question
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
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 Corporations receipts in dollars in 180 days at maturity from the forward hedge?
| a. | $27,932.96 | |
| b. | $27,800.95 | |
| c. | $359,000
| |
| d. | $27,855.15
|
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Fundamentals of Database Systems
Authors: Ramez Elmasri, Shamkant Navathe
6th edition
136086209, 978-0136086208
