Question: CORRECT ANSWER IS THERE. JUST NEED HELP WITH CALCULATIONS! THANK YOU 17) A U.S. importer has to pay Euros 400,000 in 1-year. The importer decides

CORRECT ANSWER IS THERE. JUST NEED HELP WITH CALCULATIONS! THANK YOU

CORRECT ANSWER IS THERE. JUST NEED HELP WITH CALCULATIONS!

THANK YOU

17) A U.S. importer has to pay Euros 400,000 in 1-year. The importer decides to hedge foreign exchange risk using a 100% long Euros forward contract hedge. The importer has been quoted a 1-year forward rate of $1.12 /Euros. If the spot rate in 1 year turned out to be $1.25/ Euros, how much U.S. dollars would be needed to payoff the Euros payable? Ans: $448,000 18) A U.S. importer has to pay Euros 400,000 in 1-year. The importer decides to hedge foreign exchange risk using a 100% long Euros forward contract hedge. The importer has been quoted a 1-year forward rate of $1.12 /Euros. If the spot rate in 1 year turned out to be $1.05/ Euros, how much U.S. dollars would be needed to payoff the Euros payable? Ans: $448,000

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