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An Importer Enters into a 60 Day Forward Exchange Rate

Question 96

Multiple Choice

An importer enters into a 60 day forward exchange rate for converting dollars into yuan.The spot exchange rate is 5.28 yuan for 1 dollar.The forward exchange rate is 5.27 yuan for 1 dollar.How many yuan would the importer get for 50,000 dollars?


A) 264,000
B) 364,000
C) 364,500
D) 353,500
E) 263,500

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