6) You are to receive 145,000 on July 30 from a customer in Germany. Today’s spot price is $1.14/ and the August forward rate is $1.

6) You are to receive €145,000 on July 30 from a customer in Germany. Today’s spot price is $1.14/€ and the August forward rate is $1.18/€.  You enter an August futures contract (€125,000) to sell the euro at $1.18/€.  When you receive the €145,000 on July 30 the spot exchange rate is $1.15/€ and you sell the €145,000.  On that same day you close your futures contract at $1.15/€.  What is the effective exchange rate you received for the €145,000?  Go to 4 decimal places.

]]>
.button {
background-color: #4CAF50;
border: none;
color: white;
padding: 10px 20px;
text-align: center;
text-decoration: none;
display: inline-block;
font-size: 16px;
margin: 4px 2px;
cursor: pointer;
border-radius: 10px;
}
.awasam-alert {
color: red;
}

“Are you looking for this answer? We can Help click Order Now”