Traynor Corp. made a sale worth 27.3 million yen () today to a Japanese firm. The yen/dollar

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Traynor Corp. made a sale worth 27.3 million yen (¥) today to a Japanese firm. The yen/dollar spot rate on the Japanese yen today is ¥79.37/$. How much is the sale worth in dollars if the revenue is to be received today? The firm expects to receive payment after 30 days. The one-month forward rate is quoted as ¥81.45/$. How much will the firm receive in one month if the payment is converted at the forward rate?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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