An Australian exporter has supplied goods to India and will receive 2 million Indian rupees (INR)...

     

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An Australian exporter has supplied goods to India and will receive 2 million Indian rupees (INR) in one year. The exporter expects that the INR will be selling at 11.53% discount against the Australian dollar (A$) in the one-year forward contract. The spot exchange rate is A$0.2673 and the exporter wants to sell INR2 million in the one-year forward contract. How much Australian dollar the exporter will make a loss after one year? An Australian exporter has supplied goods to India and will receive 2 million Indian rupees (INR) in one year. The exporter expects that the INR will be selling at 11.53% discount against the Australian dollar (A$) in the one-year forward contract. The spot exchange rate is A$0.2673 and the exporter wants to sell INR2 million in the one-year forward contract. How much Australian dollar the exporter will make a loss after one year?

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Lets break down each question and solve them step by step 1 Exchange Rate Calculation The exporter will make a loss because the INR will be selling at ... View the full answer