Assume that interest rate parity exists. The annualized interest rate is presently 5% in the U.S. for

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Assume that interest rate parity exists. The annualized interest rate is presently 5% in the U.S. for any term to maturity, and is 13% in Mexico for any term to maturity. Dokar Co. (a U.S. firm) has an agreement in which it will develop and export software to Mexico's government two years from now, and will receive 20 million Mexican pesos in two years. The spot rate of the peso is $.10. Dokar uses a 2-year forward contract to hedge its receivables in two years. How many dollars will Dokar Co. receive in two years? Show your work.
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