Question: Haji & Co. is a U.S. based MNC that will need 1 million Australian dollars in 60 days to pay for imported goods from Australian.

Haji & Co. is a U.S. based MNC that will need 1 million Australian dollars in 60 days to pay for imported goods from Australian. Assume that the spot rate today is $0.70 per Australian dollar. However, Haji & Co. does not have the funds to immediately exchange for Australian dollars. Assume Haji & Co decides to wait until 60 days before exchanging U.S. dollars for Australian dollars, and by this time the spot rate has risen to $0.80. Calculate the extra (additional) amount Haji& Co. would need, to pay for the imported goods compared to doing immediate exchange at todays spot rate?

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