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You have an account payable to a German exporter for 100 Porsche Cayenne SUVs.The seller offers a 2 percent discount for payment within 10 days
You have an account payable to a German exporter for 100 Porsche Cayenne SUVs.The seller offers a 2 percent discount for payment within 10 days and full payment due in 30 days (2/10 net 30).Today the exchange rate is $1.10 per Euro.You notice that the 30 day forward rate for the $/Euro is $1......what should you do?You owe 70,000 Euros for each of the cars (before any discounts)
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