60.1K

Verified Solution

Link Copied!

please answer entire question

befler rilitit in the foresid marseft \begin{tabular}{lc|c} Period Days Forward & C$=1.00 & US $=1.00 \\ \hline spot & 1.3353 & 1.3212 \\ 1 month 30 & 1.3382 & 1.3215 \\ 2 months 60 & 1.3405 & 1.3218 \\ 3 months 90 & 1.3435 & 1.3222 \\ 6 months 180 & 1.3456 & 1.3228 \\ 12 months 360 & 1.3479 & 1.3251 \\ \hline \end{tabular} James Bay Exports. A Canodian exporter, James Bay Exports, will be rocolving sex payments of E13.700, ranging from now to 12 months in the futurec Since the company keeps cash balances in both Canedian dollars and U.S. dollars, it can choose which currency to exchange the euros for at the end of the vanous periods. Which currency appears to otfer the better rates in the forward markol? Calculiate the forward premium, the Canadian dollar proceeds, and the difference from the spot rate proceeds in the CsiEuro forward market below, (Round the forward promilam to three decimal placos and the Canadian dollar amounts to the noarost cont.) \begin{tabular}{lcc} Period Days Forward & C $=1.00 & US $=1.00 \\ \hline spot & 1.3353 & 1.3212 \\ 1 month 30 & 1.3382 & 1.3215 \\ 2 months 60 & 1.3405 & 1.3218 \\ 3 months 90 & 1.3435 & 1.3222 \\ 6 months 180 & 1.3456 & 1.3228 \\ 12 months 360 & 1.3479 & 1.3251 \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert

See Answer