8 STP, Inc. has a payable denominated in 20 million South Korean won due on October...

 

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8 STP, Inc. has a payable denominated in 20 million South Korean won due on October 15. The quoted forward rate is 1,123 won per dollar. The company has to buy a Non-deliverable forward on the won with a face amount of 20 million won at the forward rate. On October 1, the spot rate is 1,180 won per dollar. What are the resulting cash flows for STP? None of the Above Buy 20 million won at 1,180 won per dollar. Receive from the NDF bank $860.29 Sell 20 million won at 1,180 won per dollar. Pay the NDF bank $860.29 Buy 20 million won at 1,180 won per dollar. Pay the NDF bank $860.29 Sell 20 million won at 1,180 won per dollar. Receive from the NDF bank $860.29 8 STP, Inc. has a payable denominated in 20 million South Korean won due on October 15. The quoted forward rate is 1,123 won per dollar. The company has to buy a Non-deliverable forward on the won with a face amount of 20 million won at the forward rate. On October 1, the spot rate is 1,180 won per dollar. What are the resulting cash flows for STP? None of the Above Buy 20 million won at 1,180 won per dollar. Receive from the NDF bank $860.29 Sell 20 million won at 1,180 won per dollar. Pay the NDF bank $860.29 Buy 20 million won at 1,180 won per dollar. Pay the NDF bank $860.29 Sell 20 million won at 1,180 won per dollar. Receive from the NDF bank $860.29

Answer rating: 100% (QA)

A None f the above An STP is often used to move money from a liquid or debt fund to an equity fund T... View the full answer