Question
. Your U.S.-based company expects to receive 50,000,000 Malaysian ringgit (MYR) 90 days from now. You decide to hedge the position by entering a forward
. Your U.S.-based company expects to receive 50,000,000 Malaysian ringgit (MYR) 90 days from now. You decide to hedge the position by entering a forward contract. The current MYR spot rate is $0.22, while the 90-day forward rate is $0.24. You expect that the spot rate in 90 days will be $0.23. How many dollars will you receive 90 days from now if you hedge using the forward contract?
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Analysis For Financial Management
Authors: Robert Higgins
7th Edition
0072863641, 9780072863642
