IBM enters into a forward contract to purchase 200,000 euros at a rate of 1.90 USD/EUR one year from today.If the spot exchange rate is 2 USD/EUR one year later,what is the dollar amount that IBM must pay to receive the euros?
A) $300,000
B) $325,000
C) $380,000
D) $400,000
E) $240,000
Correct Answer:
Verified
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