Find the net inflow to mr x

Reference no: EM132774921

Question - On 1 October 2015 Mr. X an exporter enters into a forward contract with a BNP Bank to sell US$1,00,000 on 31 December 2015 at '65.40/$. However, due to the request of the importer, Mr. X received amount on 28 November 2015. Mr. X requested the bank the take delivery of the remittance on 30 November 2015 i.e. before due date. The inter-banking rates on 28 November 2015 was as follows:

Spot '65.22/65.27

One Month Premium 10/15

If bank agrees to take early delivery then what will be net inflow to Mr. X assuming that the prevailing prime lending rate is 18%.

Required - Find the Net Inflow to Mr. X?

Reference no: EM132774921

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