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Consider the Following Equation: Spot Rate × [(Foreign Cash Flow)

Question 58

Multiple Choice

Consider the following equation: Spot Rate × [(Foreign Cash Flow) / (1 + rFC] = (F × Foreign Cash Flow) / (1 + r$)
The term F in this equation is ________.


A) the future spot exchange rate
B) the current spot exchange rate
C) the amount of foreign currency
D) the forward exchange rate

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