Question: a U.S.-based MNC, will need 10 million Thai baht on August 1. It is now May 1. the firm has negotiated a non-deliverable forward contract

a U.S.-based MNC, will need 10 million Thai baht on August 1. It is now May 1. the firm has negotiated a non-deliverable forward contract with its bank. The reference rate is the baht's closing exchange rate (in $) quoted by Thailand's central bank in 90 days. The baht's spot rate today is $.02. If the rate quoted by Thailand's central bank on August 1 is $.024, teh firm will ____ $____.

A. pay; 20,000

B. Be paid; 20,000

C. Pay; 2,000

D. Be paid; 40,000

E. None of these statements are Correct

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