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Currency Exchange Rate

A total of 805 tons of steel was shipped from Belgium to Virginia. The steel was priced at (euro) 940 per ton payable in 90 days. The exchange rate at the time of pricing was (euro) 1/$1.24. The 90- forward rate is (euro) 1/$1.28. How many dollars would the steel cost if payment were made at the time of shipping? How many dollars would the steel cost if payment were made at the end of 90 days?

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How many dollars would the steel cost if payment were made at the time of shipping?

The total cost in Euro = ...

Solution Summary

This solution is comprised of a detailed calculation to find the payment to be made at the time of shipping and at the end of 90 days.

$2.19