U.S. Jordan
360-day borrowing rate 6% 5%
360-day deposit rate 5% 4%
Refer to Exhibit 11-1. Walmart will receive (RECEIVABLES) 250,000 Jordanian dinar (JOD) in 360 days. The current spot rate of the dinar is $1.48, while the 360-day forward rate is $1.50. How much will Walmart receive in 360 days from implementing a money market hedge (assume any receipts before the date of the receivable are invested)?
360-day borrowing rate 6% 5%
360-day deposit rate 5% 4%
Refer to Exhibit 11-1. Walmart will receive (RECEIVABLES) 250,000 Jordanian dinar (JOD) in 360 days. The current spot rate of the dinar is $1.48, while the 360-day forward rate is $1.50. How much will Walmart receive in 360 days from implementing a money market hedge (assume any receipts before the date of the receivable are invested)?