5. How many USD will you receive?

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
Section: Chapter Questions
Problem 33QA
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Today you observe the folowing quotes:
Spot EURUSD= $1.14
60 Day Forward EURUSD = $1.04
In 60 day you expec to receive 447,014 Euros. In 60 days you expect the EURUSD
exchange rate to be $1.23. In 60 days the EURUSD actually is $1.03. You decided to
not hedge your receivables. How many USD will you receive?
433,994.17
Transcribed Image Text:nswered Today you observe the folowing quotes: Spot EURUSD= $1.14 60 Day Forward EURUSD = $1.04 In 60 day you expec to receive 447,014 Euros. In 60 days you expect the EURUSD exchange rate to be $1.23. In 60 days the EURUSD actually is $1.03. You decided to not hedge your receivables. How many USD will you receive? 433,994.17
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