When LVT chooses to hedge its transaction exposure in the forward market, a six month forward rate will be paid.
It should be noted that a transaction simply means a business deal that occurs between two parties.
In this case, when LVT chooses to hedge its transaction exposure in the forward market, a six month forward rate will be paid.
The amount required to make the purchase will be:
= 15000000 × 1.18
= $17700000
Learn more about transactions on:
https://brainly.com/question/1016861
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