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Suppose Dow Chemical receives a quote of spot and 90day forward rates of $000936061 910 for the JPY Hint These are $Â exchange bid and ask quotes, as given by foreign exchange trader

Suppose Dow Chemical receives a quote of spot and 90-day forward rates of $0.009360-61, 9-10 for the JPY. (Hint: These are $/¥ exchange, bid and ask, quotes, as given by foreign exchange traders). How much will it cost Dow Chemical (in US$) to buy ¥1 billion 90 days later if it buy the 90 forward contract today? Show steps.

 

Aug 16 2020 View more View Less

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