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You are concerned about your transaction exposure on a recent purchase from an importer in Germany. The invoice, just sent, is 95,000 euros payable in 60 days, which will be about mid-September. The current exchange rate is $1.10 per euro, and you fear that the dollar will depreciate against the euro due to the relatively low interest rates currently prevailing in the United States. The following forward rate is $1.12.

What is the cost of the invoice in dollars at the current spot rate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91783513

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