July 15, 2XX6, Liz converts 627,000 U.S. dollars to Japanese yen in the spot foreign exchange market (¥109.92/$) and purchase a six-month forward contract (¥100.89/$) to convert yen into dollars. What is Liz's profit or loss in U.S. dollars at the end of six months? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16). Use a negative sign to denote a loss.)

July 15, 2XX6, Liz converts 627,000 U.S. dollars to Japanese yen in the spot foreign exchange market (¥109.92/$) and purchase a six-month forward contract (¥100.89/$) to convert yen into dollars. What is Liz's profit or loss in U.S. dollars at the end of six months? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16). Use a negative sign to denote a loss.)

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter11: Managing Transaction Exposure

Section: Chapter Questions

Problem 4ST

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