Graylon, Inc

question 77

Multiple Choice

Graylon, Inc., based in Washington, exports products to a German firm and will receive payment of €200,000 in three months. On June 1, the spot rate of the euro was $1.12, and the 3-month forward rate was $1.10. On June 1, Graylon negotiated a forward contract with a bank to sell €200,000 forward in three months. The spot rate of the euro on September 1 is $1.15. Graylon will receive $____ for the euros.

• A) 224,000
• B) 220,000
• C) 200,000
• D) 230,000

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Definitions:

Mortality

The condition of being subject to death.

Oxygen Deprivation

A condition resulting from an insufficient supply of oxygen to the body or a particular organ, often leading to serious health consequences.

Dying With Dignity

The concept or practice of ending a life in a manner that preserves the dignity and minimizes the suffering of the individual.

Unintentional Poisoning

The accidental ingestion, inhalation, or absorption through the skin of toxic substances, leading to harmful effects on health.