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How much would crane save by hedging with a forward contract

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Question 1: Crane Industries has purchased equipment from a Brazilian firm for a total cost of 315,000 Brazilian reals. The firm has to pay in 30 days. Citibank has given the firm a 30-day forward quote of $0.3102/real. Assume that on the day the payment is due, the spot rate is $0.3401/real. How much would Crane save by hedging with a forward contract?

Reference no: EM132873668

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