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Victoria Exports. A Canadian exporter, Victoria Exports, will be receiving six payments of 14,000, ranging from now to 12 months in the future. Since the
Victoria Exports. A Canadian exporter, Victoria Exports, will be receiving six payments of 14,000, ranging from now to 12 months in the future. Since the company keeps cash balances in both Canadian dollars and U.S. dollars, it can choose which currency to exchange the euros for at the end of the various periods. Which currency appears to offer the better rates in the forward market? (Click on the icon to import the table into a spreadsheet.) Days Forward Period spot 1 month 2 months 3 months 6 months 12 months 30 60 90 180 360 CS/euro 1.3383 1.3408 1.3437 1.3459 1.3488 1.3516 US $/ouro 1.3239 1.3242 1.3246 1.3249 1.3252 1.3276 Victoria Exports. A Canadian exporter, Victoria Exports, will be receiving six payments of 14,000, ranging from now to 12 months in the future. Since the company keeps cash balances in both Canadian dollars and U.S. dollars, it can choose which currency to exchange the euros for at the end of the various periods. Which currency appears to offer the better rates in the forward market? (Click on the icon to import the table into a spreadsheet.) Days Forward Period spot 1 month 2 months 3 months 6 months 12 months THE 30 60 90 180 360 C$/euro 1.3383 1.3408 1.3437 1.3459 1.3488 1.3516 US$/euro 1.3239 1.3242 1.3246 1.3249 1.3252 1.3276 2 months 60 1.3246 0.317 % $ 18,544.40 $ 9.80 3 months 90 1.3249 $ 18,548,60 $ 14.00 0.302 % 0.196 % 6 months 180 1.3252 $ 18.552.80 $ 18.20 12 months 360 1.3276 0.280 % $ 18,586.40 $ 51.80 Which currency appears to offer the better rates in the forward market? (Select from the drop-down menus.) The Canadian exporter will be receiving six payments of 14,000 euros, ranging from now to 12 months in the future. Since the company keeps cash balances in both Canadian dollars and U.S. dollars, it can choose which currency to change the euros to at the end of the various periods. And since the company wishes to lock in the forward rate for each and every payment, it would appear that the company should lock in forward rates in for all payments. Since the euro is selling forward at a greater premium against the than the the resulting dollar proceeds are higher Victoria Exports. A Canadian exporter, Victoria Exports, will be receiving six payments of 14,000, ranging from now to 12 months in the future. Since the company keeps cash balances in both Canadian dollars and U.S. dollars. It can choose which currency to exchange the euros for at the end of the various periods. Which currency appears to offer the better rates in the forward market? (Click on the icon to import the table into a spreadsheet.) Days Forward B Period spot 1 month 2 months 3 months 6 months 12 months 30 60 90 180 360 C$/euro 1.3383 1.3408 1.3437 1.3459 1.3488 1.3516 US$/euro 1.3239 1.3242 1.3246 1.3249 1.3252 1.3276 2 months 60 1.3246 0.317 % $ 18,544.40 $ 9.80 3 months 90 1.3249 0.302 % $ 18,548.60 $ 14.00 6 months 180 1.3252 $ S 0.196 % 0.280 % 18.20 12 months 360 1.3276 18,552.80 18,586.40 S S 51.80 Which currency appears to offer the better rates in the forward market? (Select from the drop-down menus.) The Canadian exporter will be receiving six payments of 14,000 euros, ranging from now to 12 months in the future. Since the company keeps cash balances in both Canadian dollars and U.S. dollars, it can choose which currency to change the euros to at the end of the various periods. And since the company wishes to lock in the forward rate for each and every payment, it would appear that the company should lock in forward rates in for all payments. Since he euro is selling forward at a greater premium against the than the the resulting dollar proceeds are higher
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