Question
Your company will receive AUD2,000,000 in 90 days. To convert this amount into USD, you contact a bank to sell AUD forward. Here is the
Your company will receive AUD2,000,000 in 90 days. To convert this amount into USD, you contact a bank to sell AUD forward. Here is the information you got:
90-day forward rate: AUD1 = USD0.85
Today spot rate: AUD1 = USD0.90
After 90 days, market spot rate is AUD1 = USD0.92
90-day Forward rate premium/discount is:
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Valuation Measuring And Managing The Value Of Companies
Authors: McKinsey & Company Inc., Tom Copeland, Tim Koller, Jack Murrin
3rd Edition
0471361909, 978-0471361909
