A U.S. firm has a payable of €1,450,000 in one year. Forward rate quotes are €.805/$ bid and €.807/$ ask.

A U.S. firm has a payable of €1,450,000 in one year. Forward rate quotes are €.805/$ bid and €.807/$ ask. If the U.S. firm hedges with a forward, what is the guaranteed cost in USD for the payable?

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jeff jeffy answered 2 years ago

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