Assume IBM Enters into a Forward Contract to Purchase 200,000

question 101

Multiple Choice

Assume IBM enters into a forward contract to purchase 200,000 euros at a rate of $1.90/euro one year from today. If the spot exchange rate is $2/euro one year later, what is the dollar amount that IBM must pay to receive the euros?

• A) $300,000
• B) $325,000
• C) $380,000
• D) $400,000

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Definitions:

Psychoanalyst

A professional trained in psychoanalysis, a therapeutic approach that focuses on exploring the unconscious mind's impact on behavior and thought.

Unconditional Positive Regard

Unconditional Positive Regard is an attitude of total acceptance and support towards another person, regardless of what they say or do, often used in client-centered therapy.

Client-Centred Therapy

A form of psychotherapy developed by Carl Rogers that emphasizes providing a supportive environment where clients can enhance their self-understanding.

Client-Centred Therapy

A counseling approach developed by Carl Rogers that focuses on the individual's subjective view of the world, emphasizing unconditional positive regard, empathy, and congruence in the therapeutic relationship.