If the spot rate was $1.0410/C$ and the 90-day forward rate was $1.0510/C$, how much more...
If the spot rate was $1.0410/C$ and the 90-day forward rate was
$1.0510/C$, how much more (in U.S. dollars) would you receive by
selling C$1,521,000 at the forward rate than at the spot
rate?
Homework Answers
The US dollars that we would receive more by selling C$1,521,000 is computed as shown below:
= ( $ 1.0510 - $ 1.0410 ) x C$ 1,521,000
= $ 15,210
Feel free to ask in case of any query relating to this question
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