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Given the Following Information for a 90 Day Contract

question 26

Multiple Choice

Given the following information for a 90 day contract: Given the following information for a 90 day contract:   What will be the forward rate? A) 1FC = .75 US Dollars B) 1FC = .57 US Dollars C) 1FC = .745 US Dollars D) 1FC = .70 US Dollars What will be the forward rate?


Definitions:

Capital Contribution

The sum of money or assets that the owners or shareholders provide to a company for its use in business operations.

Contribution

The act of providing a partial payment or service by a party among others towards a common goal or to make up for a joint liability.

Limited Partnership

A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners, there are one or more limited partners who have limited liability to the extent of their investments and do not participate in the management of the business.

Promissory Note

A written promise to pay a specified sum of money to a designated person at a fixed or determinable future time.

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