While visiting India, you purchased a sports car to be delivered to you in three months. The purchase price is Rupees 2000000 to be paid on the delivery date. You are going to keep your money at Indian Bank for the next three months, which offers 6% per annum, compounded monthly. 

The current spot rate is Rupees 80/5 and the current three-month forward rate is Rupees 82/S. How many dollars do you need today to be able to pay Rupees 2000000 in three months?

Answer rating: 100% (QA)

To determine how many dollars you need to pay Rupees 2000000 in three months we first need to calcul... View the full answer