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A U.S. company has committed to pay 12 million kronor to a Swedish company in one year. What is the cost (in present value) of covering this liability by buying kronor forward? The Swedish interest rate is.9%, and exchange rates are shown in Table 271. Cost Altoviti Spot Rate Mouth 6 Month Yea Europe: Euro EUR 1.1758 11500 1.1845 1.1916 CZK 21.553 21.605 21.5 Czech Republic koruna) 21.353 Hungary (forint HUF 267.28 265.70 264438 261 320 Poland Cloty PLN 35773 3.5691 3.5665 3.5618 Russia (ruble) RUB 58879 59.453 60.205 61 501 Sweden krona) SEK 8.4976 8.4355 8.3856 8.2836 Switzerland (frane) CHF 99059 98222 97503 S6099 United Kingdom (pound GBP or 1.3321 1.3353 13478 1.3520 Americas: Bran (real BRL 3.3124 3.3333 3.3661 Canada (dollar CAD 1.2881 1.2854 1.2841 12820 Chile (peso) CLP 635.93 635.77 636.62 6.39.14 Mexico MXN 19 131 19.417 19.725 20.371 Pacific/Middle East/Africa Australia (dollar AUD 1.3077 1.3082 1.3054 1.3034 China (yuan) CNY 6,6076 6.6542 6.6947 6.7668 India rupee INR 64.148 64358 65.407 66,676 Israel (shekel) ILS 3.5144 3.5010 3.4858 3.4511 Japan (ven) JPY or 112.61 111.04 11133 109.99 New Zealand (dollar) NZD 1.4294 1:4312 1.339 South Africa (rand) ZAR 13.180 13.365 13.555 13.912 South Korea (won) KRW 1.059.2 1.0873 1.085.7 1.082.1 Turkey (lira) TRY 3.5676 3,9739 4.0999 4.3306 ) TABLE 271 Spot and forward exchange rates, December 2017. Source: CME Group is how the number of units of foreign current Der US clothes and the UK Humbers are unit of former

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