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Exchange Rate

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Firm has a british customer that is willing to place a $1mill order but wants to pay in pounds instead of dollars. The spot exchange rate is $1.85 - pd1.00 and the one year forward rate is $1.90 - pd1.00. Lead time is payment is due in one year. What is the fairest exchange rate to use?

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The expert determines the fairest exchange rate to use for a British firm.

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