You are considering a project in Poland which has an initial cost of 250,000 PLN. The project is expected to return a one-time payment of 400,000 PLN 5 years from now. The risk-free rate of return is 3% in Canada and 4% in Poland. The inflation rate is 2% in Canada and 5% in Poland. Currently, you can buy 375 PLN for $100. How much will the payment 5 years from now be worth in dollars?
Select one:
a. $146,235.0
b. $142,060.0
c. $101,490.0
d. $1,489,025.0
e. $1,576,515.0
The 60-day forward rate for Japanese Yen is x108.02 per $1. The spot rate is x103.09 per $1. In 60 days, you expect to receive x1,500,000. If you agree to a forward contract, how many dollars will you receive in 60 days?
Select one:
a. $15,312,000.0
b. $13,886,000.0
c. $14,550,000.0
d. $154,635,000.0