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You have 250,000 payables due in 3 months time. You decided to hedge this with a forward contract at the forward exchange rate of 1.15
You have 250,000 payables due in 3 months time. You decided to hedge this with a forward contract at the forward exchange rate of 1.15 $/. In 3 months time, the exchange rate is $1.12 $/. How much is your payment in US dollars?
Group of answer choices
$250,000
$287,500
$223,214
$217,391
$280,000
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