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solina solina
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6 years ago
Assume that an importer of wine were to purchase 5,000 cases of premium French Bordeaux for 700,000 euro. Further assume that the quoted exchange rates are as follows: spot rate = .9542 euro to the U.S. dollar; 30-day forward rate = .9502 euro to the U.S. dollar; and 90-day forward rate = .9498 euro to the U.S. dollar. If the actual currency exchange rate at the time payment is due in 90 days is equal to the forward rate of .778 euro to the U.S. dollar, how much would the wine cost the importer in U.S. dollars if payment is made in 90 days? Round to the nearest dollar.
A) $949,800
B) $664,860
C) $105,285
D) $736,997
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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Heavy Heart Thank you bio-forums! Heavy Heart
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LutionalLutional
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solina Author
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#2
6 years ago
Thanks for helping me with my business management course
Heavy Heart Thank you bio-forums! Heavy Heart
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