Technocorp has purchased industrial parts from a German company for a total cost of 1,225,000. The firm

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Technocorp has purchased industrial parts from a German company for a total cost of €1,225,000. The firm has 30 days to pay. A bank has given Technocorp a 30-day forward quote of $1.355/€. Assume that on the day the payment is due, the spot rate is $1.368/€. How much would Technocorp have saved by hedging with a forward contract?
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Related Book For  answer-question

Fundamentals of Corporate Finance

ISBN: 978-1118845899

3rd edition

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

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