Solved: If the spot rate of the gbp on september 1 is 115 what is, Finance Basics

+44 141 628 6080
[email protected]

If the spot rate of the gbp on september 1 is 115 what is

General Motors Inc., based in United States, exports products to a British firm and will receive payment of sterling pound 200,000 in three months. On June 1, the spot rate of the sterling was $1.12, and the 3-month forward rate was $1.10. On June 1, General Motors negotiated a forward contract with a bank to sell GBP 200,000 forward in three months. If the spot rate of the GBP on September 1 is $1.15. What is the total amount that General Motor will receive in USD?

View Complete Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: If the spot rate of the gbp on september 1 is 115 what is

Reference No:- TGS02728501

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

Investigate the cause of the recent werewolf attacks

create a temporary committee to investigate the cause of the recent werewolf attacks in major cities throughout the United States.

Describe marxist theory and psychology of addiction

Compare the Marxist Theory and Psychology of Addiction with the Realistic Theory and psychology of Addition.

Explain framers decisions in creating the constitution

Explain how the Articles of Confederation made the above scenario possible. Describe how this scenario influenced the framers' decisions in creating the Constit

Federal bureaucracy has to put up with a lot of red tape

Question: The Federal Bureaucracy has to put up with a lot of "red tape". What is "red tape" in regards to government?

What power of recognition when it comes to office president

Question: What is "power of recognition" when it comes to the office of the president? Question Select one

What right ordinance power give to the president

Question: What right does the Ordinance Power give to the president? Question Select one:

Analyze leadership of organization during particular event

Analyze leadership of an organization during a particular event or across a defined set of events. The assignment will assess your ability to identify

Solution Preview :

Prepared by a verified Expert

Finance Basics: If the spot rate of the gbp on september 1 is 115 what is

Reference No:- TGS02728501

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Comment on the aggressive marketing and rollout plans used

Q : Greg deposits 10000 in a bank account that pays 3 interest

Q : Ameritech corporation paid dividends per share of 356 and

Q : If jack were to save 6000 each year what return does sherry

Q : If the spot rate of the gbp on september 1 is 115 what is

Q : Use the cem research tools to answer the questions - what

Q : Rent revenue will be recognized during the last year of the

Q : If the company follows the residual dividend policy how

Q : You are analyzing the after-tax cost of debt for a firm you