国际金融Chapter 5.pptVIP

Chapter 5 Answer: B €200,000 × $1.10 = $220,000 1. Graylon, Inc., based in Washington, exports products to a German firm and will receive payment of €200,000 in three months. On June 1, the spot rate of the euro was $1.12, and the 3-month forward rate was $1.10. On June 1, Graylon negotiated a forward contract with a bank to sell €200,000 forward in three months. The spot rate of the euro on September 1 is $1.15. Graylon will receive $_______ for the euros. A) 224,000 B) 220,000 C) 200,000 D) 230,000 Answer: B (F/S) – 1 = ($1.60/$1.63) – 1 = –1.8 percent. 2. The one-year forward rate