An Australian importing company will make a payment of 3,500,000 NZD in 3 months time. The firm
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An Australian importing company will make a payment of 3,500,000 NZD in 3 months time. The firm buys NZD forward to hedge this exposure.
Current spot: 1.040/ 1.045 AUD/NZD
3 month forward rate: 1.079/1.085 AUD/NZD
Expected 3 month spot: 1.075/1.080 AUD/NZD
How many AUD will the Australian importing company have to pay (round to nearest dollar)
Related Book For
Advanced Accounting
ISBN: 9781264798483
15th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer And Timothy Doupnik
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