Table 28.1 shows the 90-day forward rate on the Thai baht. a. Is the dollar at a
Question:
Table 28.1 shows the 90-day forward rate on the Thai baht.
a. Is the dollar at a forward discount or premium on the baht?
b. What is the annual percentage discount or premium?
c. If you have no other information about the two currencies, what is your best guess about the spot rate on the baht three months hence?
d. Suppose that you expect to receive 100,000 baht in three months. How many dollars is this likely to be worth?
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Related Book For 
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
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