BGoing, Inc., based in Washington, exports products to a German firm and will receive payment of...
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BGoing, Inc., based in Washington, exports products to a German firm and will receive payment of €220,000 in three months. On June 1, the spot rate of the euro was $1.12, and the 3-month forward rate was $1.10. On June 1, BGoing negotiated a forward contract with a bank to sell €200,000 forward in three months. The spot rate of the euro on September 1 is $1.15. How many US$ Bgoing will receive for the euros. Show computations. BGoing, Inc., based in Washington, exports products to a German firm and will receive payment of €220,000 in three months. On June 1, the spot rate of the euro was $1.12, and the 3-month forward rate was $1.10. On June 1, BGoing negotiated a forward contract with a bank to sell €200,000 forward in three months. The spot rate of the euro on September 1 is $1.15. How many US$ Bgoing will receive for the euros. Show computations.
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