How many jod does pablo need now

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Question - The 360-day borrowing and deposit rate in the U.S. is 7% and 4%, respectively. The 360-day borrowing and deposit rate in Jordan is 5% and 2%, respectively. Pablo Corp. will need 200,000 Jordanian dinars (JOD) in 360 days. The current spot rate of the dinar is $1.60, the 360-day forward rate is $1.58, and the spot rate in 360 days will be $1.61. If Pablo decides to implement a money market hedge, how many JOD does Pablo need now?

Reference no: EM132971327

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