KingDallydaz67931 KingDallydaz67931

06-03-2024
Business

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An Italian company is expecting to receive Kuwait dinars in 9 months’ time. The spot rate is lire/dinar 5.467.Your Company could borrow in dinar at 9% per annum or in Lire at 14% per annum
No forward rate exist for 9 months’ time
Required:
I. Forward premium or discount and interpret the result.

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