Multiple Choice
Assume IBM enters into a forward contract to purchase 100,000 euros at a rate of $1.60/euro one year from today. If the spot exchange rate is $2/euro one year later, what is the dollar amount that IBM must pay to receive the euros?
A) $100,000
B) $160,000
C) $200,000
D) $300,000
Correct Answer:
Verified
Correct Answer:
Verified
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