Question: Procter & Gamble, Inc., a U.S.-based MNC, will receive 20 million Nepalese rupees on November 1. It is now August 1. Procter & Gamble has

Procter & Gamble, Inc., a U.S.-based MNC, will receive 20 million Nepalese rupees

on November 1. It is now August 1. Procter & Gamble has negotiated a non-

deliverable forward contract with its bank. The reerence rate is the Nepalese

rupees' closing exchange rate (in $) quoted by Nepal's central bank in 90 days. The

Nepalese rupees' spot rate today is $0.0089. If the rate quoted by Nepal's central

bank on November 1 is $0.0091, Procter & Gamble will be $_1

be paid: 4.000

pay: 40,000

be paid: 40,000

pay: 4,000

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