Ramji Enterprises, an export house, is expecting to receive USD 500,000 from its buyer in USA after
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Question:
Ramji Enterprises, an export house, is expecting to receive USD 500,000 from its buyer in USA after 6 months.
The spot rate for INR/USD is 73.80 and the firm wants to protect against exchange risk.
The 6 months forward rate for INR/USD is quoted at 74.25 -74.39 and the firm goes for forward rate contract.
Required:
Evaluate the amount Ramji Enterprises will receieve against the forward contract after 6 months.
Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
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