General Studies · Risk Management
Tudor Co's project expects cash inflows in Dirhams: 200m dirhams in 6 months and 400m dirhams in 12 months. The current spot rate is 4 dirhams per $1. The short-term annual interest rates are 6% for Dollars and 8% for Dirhams. Using exchange rates based on Interest Rate Parity (IRPT), what is the total dollar income received from the project?
- 1$152.8m
- 2$152.4m
- 3$147.7m✓
- 4$147.2m
Correct answer
$147.7m
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