Business, 04.12.2019 00:31 Jasten

An american firm sells farm equipment to a british company for ₤250,000 to be paid in 180 days. the current exchange rate is $1.98/₤. the exporter hedges its exchange rate risk by selling ₤250,000 forward 180 days at the prevailing 180-day forward exchange rate of $2.01/₤. what is the dollar amount the american firm is expected to receive in 180 days?

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An american firm sells farm equipment to a british company for ₤250,000 to be paid in 180 days. the...