The sweet company an american firm owes a swiss chocolate, Financial Management

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The sweet company an american firm owes a swiss chocolate

The Sweet company, an American firm, owes a Swiss chocolate supplier SF1,000,000, payable in 30 days. Which firm is assuming the foreign exchange risk? Sweet company can buy a 30-day forward contract to purchase Swiss francs at $0.7500/SF. How many dollars must Sweet deliver in order to have enough francs to pay its obligation to the chocolate supplier?

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Financial Management: The sweet company an american firm owes a swiss chocolate

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Financial Management: The sweet company an american firm owes a swiss chocolate

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