Financial Derivatives (MBA)

posted by .

Assume Sun Microsystems expects to receive €20,000,000 in 90 days. A dealer provide a quote of $0.875 for a currency forward contract to expire in 90 days. Suppose that at the end of 90 days, the rate is $0.90. Assume that settlement is in cash. Calculate the cash flow at expiration if Sun Microsystems enters into forward contract expiring in 90 days to buy dollars at $0.875

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. finance /accounting- PLEASE HELP

    Aging Accounts Receivable: Madariaga Campany's accounts receivable reveal the following balances: current 840,000 1-30 days past due 405,000 31-60 days past due 95,000 61-90 days past due 60,000 91-120 days past due 11,000 The credit …
  2. math

    of the following which is the closest approximation to the amount of time it takes to read a 487-page book at the rate of 25 pages a day ?
  3. math

    Calculate the monthly finance charge for the following credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. Assume 365 days in a year. (Round your answer …
  4. ALGEBRA

    Calculate the monthly finance charge for the following credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. Assume 365 days in a year. (Round your answer …
  5. ALGEBRA

    Calculate the monthly finance charge for the following credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. Assume 365 days in a year. (Round your answer …
  6. ALGEBRA

    Calculate the monthly finance charge for the following credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. Assume 365 days in a year. (Round your answer …
  7. ALGEBRA

    Calculate the monthly finance charge for the following credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. Assume 365 days in a year. (Round your answer …
  8. Math

    Calculate the monthly finance charge for the following credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. Assume 365 days in a year. (Round your answer …
  9. math

    Calculate the monthly finance charge for the following credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. Assume 365 days in a year. (Round your answer …
  10. Business math

    Total current assets (CA) $20,000 Accounts receivable (AR) $10,000 Current liabilities (CL) $11,000 Inventory (INV) $4,000 Net sales $30,000 Total assets $25,000 Net income $5,000 Calculate average day’s collection. A. 12 days C. …

More Similar Questions