Barrington Fertilizers, Inc., exports its specialized lawn care products to Canada. It made a sale worth C$1,150,000,

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Barrington Fertilizers, Inc., exports its specialized lawn care products to Canada. It made a sale worth C$1,150,000, with the payment due in 90 days. Barrington’s banker gave it a forward quote of $0.9021/C$. By using the forward rate, the firm gained an additional $8,433.25 over what it would have gotten if it had sold the Canadian dollars in the spot market 90 days later. What was the spot rate at the time the payment was received?

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Fundamentals of Corporate Finance

ISBN: 978-1119371403

4th edition

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

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