Current spot rate on the brazilian real

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Assume that the current spot rate on the Brazilian real (BRL) is $0.18USD and that the 180- day forward premium for the BRL is 6% (annualized). If your company wants to hedge a 2,000,000BRL payable due in 180 days using a forward contract, how much will it pay in USD in 180 days?

Reference no: EM133074346

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