John Travers is planning a holiday to Thailand but is concerned that the U.S. dollar will depreciate before he makes his trip. His travel agent has planned a trip for him for a total cost of 41,250 Thai baht. John plans to purchase the bahts forward and is given a dollar estimate of $1,247.17 based on the 30-day forward quote. What is the forward rate?

Question

Quizplus · Accepted Answer

To find the forward rate, we need to divide the total cost in Thai baht by the dollar estimate given in the 30-day forward quote.

Forward rate = THB41,250 / $1,247.17 = THB33.0749/$

Therefore, the best choice is B.

John Travers Is Planning a Holiday to Thailand but Is