Tricolor Industries has purchased equipment from a Brazilian firm for a total cost of 272,500 Brazilian reals.
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Tricolor Industries has purchased equipment from a Brazilian firm for a total cost of 272,500 Brazilian reals. The firm has to pay in 30 days. Citibank has given the firm a 30-day forward quote of $0.3102/real. Assume that on the day the payment is due, the spot rate is $0.3417/real. How much would Tricolor save by hedging with a forward contract?
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Foreign currency payables BR 272500 Spot rate on payme...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1119371403
4th edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
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