Panhandle Inc. based in texas, exports products to a german firm and will receive payment of Euro5000000 in three months. On June 1, the spot rate of the euro was $1.09, and the 3-mpnth foward rate was $1.18. On June 1, Panhandle negotiated a foward contract with a bank to sell euro5000000 foward in three months. the spot rate of the euro on september 1 is $1.22. Panhandle will receive $_____ for the euros.
Panhandle Inc. based in texas, exports products to a german firm and will receive payment of Euro5000000 in three months. On June 1, the spot rate of the euro was $1.09, and the 3-mpnth foward rate was $1.18. On June 1, Panhandle negotiated a foward contract with a bank to sell euro5000000 foward in three months. the spot rate of the euro on september 1 is $1.22. Panhandle will receive $_____ for the euros.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Panhandle Inc. based in texas, exports products to a german firm and will receive payment of Euro5000000 in three months. On June 1, the spot rate of the euro was $1.09, and the 3-mpnth foward rate was $1.18. On June 1, Panhandle negotiated a foward contract with a bank to sell euro5000000 foward in three months. the spot rate of the euro on september 1 is $1.22. Panhandle will receive $_____ for the euros.
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