Chapter 17 Foreign Exchange Risk

8. The current spot rate for the Dollar /Euro is $/€ 2.0000 +/- 0.003. The dollar is quoted at a 0.2c premium for the forward rate. What will a $2,000 receipt be translated to at the forward rate? A €4,002. B €999.5. C €998. D €4,008. 9. The spot rate of exchange is £1 = $1·4400. Annual interest rates are 4% in the UK and 10% in the ... ................
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