Ibm us has purchased a non-deliverable forward ndfs from, Ask an Expert

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IBM (US) has purchased a non-deliverable forward (NDFs) from Bank of America to hedge Kr300,000,000 account receivable (AR) from Korea. The current spot rate is $.0011/Kr. The NDF forward exchange rate is Kr1065/$. At maturity, the spot rate turns out to be Kr1188/$. How much will Bank of America pay (or be paid) to (by) IBM?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91772082

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