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What will be its cost of imports in dollars

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A U.S firm imports some minerals from Brazil worth Brazilian Real 1 million due in in 90 days. The firm wants to hedge its exchange rate risk using a forward contract. The bid ask spot rate quoted is Real 3.5800-3.5890/$ and the 90-day bid ask forward rate quoted is Real 3.5900-3.5970/$. What will be its cost of imports in dollars in 90 days at maturity from the forward hedge?

Reference no: EM132494979

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