Chic clothing inc has imported 1000000 worth of dress


Question: Chic Clothing Inc. has imported €1,000,000 worth of dress shirts from France. The payment is due in 3 month time. The currents spot rate is $1.05/€. The three month forward rate is $1.055/€. Suppose they are looking at hedging in the money market. They could invest in the French money market at 10 percent per annum. How many dollars would they require to get the euro equivalent in the previous question?

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Finance Basics: Chic clothing inc has imported 1000000 worth of dress
Reference No:- TGS02750282

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