Calculate the cash flow at expiration if sun microsystems


Assume Sun Microsystems expects to receive 20,000,000 in 90 days. A dealer provides a quote of $0.875 for a currency forward contract to expire in 90 days. Suppose that at the end of 90 days, the rate is $0.90. Assume that settlement is in cash. Calculate the cash flow at expiration if Sun Microsystems enters into a forward contract expiring in 90 days to buy dollars at $0.875.

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Financial Management: Calculate the cash flow at expiration if sun microsystems
Reference No:- TGS02626606

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