Give typing answer with explanation and conclusion 1. You enter an NDF to buy UYU (Uruguayan Peso) for $.0363/UYU. The contract size is UYU50,000,000 and the contract matures in six months.  If the spot rate is $.0381/UYU in six months, will you owe the bank money, or will the bank owe you money? How much in total?  If the spot rate is $.0346/UYU in six months, will you owe the bank money, or will the bank owe you money? How much in total?

Give typing answer with explanation and conclusion 1. You enter an NDF to buy UYU (Uruguayan Peso) for $.0363/UYU. The contract size is UYU50,000,000 and the contract matures in six months.  If the spot rate is $.0381/UYU in six months, will you owe the bank money, or will the bank owe you money? How much in total?  If the spot rate is $.0346/UYU in six months, will you owe the bank money, or will the bank owe you money? How much in total?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

ChapterP2: Part 2: Exchange Rate Behavior

Section: Chapter Questions

Problem 1Q

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