Question
Your company has a 1 million Brazilian real (BRL) payable in one year. You decided to fully hedge with forward contracts. The one year forward
Your company has a 1 million Brazilian real (BRL) payable in one year. You decided to fully hedge with forward contracts.
The one year forward rate is 6 BRL/USD.
How much will you pay in USD in one year?
Note: provide your answers with four decimal points and in millions of USD. Please do the calculations in Excel and round up the results to four decimal points only at the end, once the calculations are completed.
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
