Tantrix Industries sold equipment to a Mexican firm. Payment of 27,556,000 pesos will be due to Tantrix

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Tantrix Industries sold equipment to a Mexican firm. Payment of 27,556,000 pesos will be due to Tantrix in 30 days. Tantrix has the option of selling the pesos at a 30-day forward rate of $0.08914/ peso. If the company waits 30 days to sell the pesos and the spot rate turns out to be $0.08857/peso, in dollars, how much better off will Tantrix be if the pesos are sold in the forward market?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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