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Suppose a U

Question 112

Multiple Choice

Suppose a U.S.importer purchases an Italian product today but will not pay for it for 90 days.The cost of the product today is 35,000 euros.The spot exchange rate today is .6233 euros per dollar.The importer creates a forward-market hedge.The 90-day forward rate is .6100 euros per dollar.The amount the U.S.importer will pay in 90 days is


A) $56,153.
B) $57,377.
C) $55,683.
D) $56,667.

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