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11.a. The couch costs 3000 Euro in France - given the current exchange rate of $1 = 0.85 Euro, if you had the money right away how much would it cost you in in dollars? Next if you were to draw up a contract for a delivery to hedge your costs in the future at a forward rate of $1-0.80 Euro, how much would you have put aside in dollars? Were you lucky or not if the actual future rate ended up being $1=0.90 Euro - calculate and show! culate and show!

11.a. The couch costs 3000 Euro in France - given the current exchange rate of $1 = 0.85 Euro, if you had the money right away how much would it cost you in in dollars? Next if you were to draw up a contract for a delivery to hedge your costs in the future at a forward rate of $1-0.80 Euro, how much would you have put aside in dollars? Were you lucky or not if the actual future rate ended up being $1=0.90 Euro - calculate and show! culate and show!

Chemistry
Chemistry
10th Edition
ISBN:9781305957404
Author:Steven S. Zumdahl, Susan A. Zumdahl, Donald J. DeCoste
Publisher:Steven S. Zumdahl, Susan A. Zumdahl, Donald J. DeCoste
Chapter1: Chemical Foundations
Section: Chapter Questions
Problem 1RQ: Define and explain the differences between the following terms. a. law and theory b. theory and...
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11.a. The couch costs 3000 Euro in France - given the current exchange rate of $1 = 0.85 Euro, if you had the money right away how much would it cost you in in dollars? Next if you were to draw up a contract for a delivery to hedge your costs in the future at a forward rate of $1-0.80 Euro, how much would you have put aside in dollars? Were you lucky or not if the actual future rate ended up being $1=0.90 Euro - calculate and show! culate and show!
Transcribed Image Text:11.a. The couch costs 3000 Euro in France - given the current exchange rate of $1 = 0.85 Euro, if you had the money right away how much would it cost you in in dollars? Next if you were to draw up a contract for a delivery to hedge your costs in the future at a forward rate of $1-0.80 Euro, how much would you have put aside in dollars? Were you lucky or not if the actual future rate ended up being $1=0.90 Euro - calculate and show! culate and show!
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