You represent a US based business involved in international (cross-border) purchase. In order to complete your purchase you will need one million in foreign currency (UK Pounds/Brazilian Real/Thailand Bhat)
Your assignment:
1. What will is the value of your transaction today? (How many dollars would you need today?)
2. What is the value of your transaction in 30days? (How many dollars would need then?) To determine this you must forecast the exchange rate. What factors did you consider to make this forecast?
3. What action will you take today? Why?
Your answer should be detailed enough to show how you arrived at the value you will need in thirty days and how your activity (or inactivity) will benefit your company.