Question: ( c ) Suppose on Jan 5 , a firm booked a 3 month forward contract to sell GBP 5 0 0 0 0 at

(c) Suppose on Jan 5, a firm booked a 3 month forward contract to sell GBP 50000 at the rate of INR 96.50. The delivery date is April 7. On Feb 5, the firm requested the bank for delivery on March 7. The rates on Feb 5 are as follows:
GBP/INR spot: 95.40/43
1 month swap: 10-15
2 month swap: 20-29
Calculate the cash flow for the exporter.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!