Covington Industries just sold equipment to a Mexican firm. Payment of 11,315,000 pesos will be due to
Question:
Covington Industries just sold equipment to a Mexican firm. Payment of 11,315,000 pesos will be due to Covington in 30 days. Covington has the option of selling the pesos at a 30-day forward rate of $0.09139/peso. If it waits 30 days to sell the pesos, the expected spot rate is $0.0907/peso. In dollars, how much better off is Covington by selling the pesos in the forward market?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Foreign currency receivables MP 11315000 Spot rate on payment date 00907pes...View the full answer
Answered By
Sinmon Warui Kamau
After moving up and down looking for a job, a friend introduced me to freelance writing. I started with content writing and later navigated to academic writing. I love writing because apart from making a living out of it, it is also a method of learning and helping others to learn.
40+ Reviews
45+ Question Solved
Related Book For 
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Question Posted:
