Honey Corp., an American wood retailer, buys wood from Bolivian producers. The total amount of this transaction is 950,000 Bolivian boliviano due in 60 days. The spot rate is $18.5053/BOB.
Given the currency instability of the boliviano, Honey Corp. decided to lessen financial risk with a forward contract.
In these times, inflation is pretty high in Bolivia and amounts to 151.9% a year. Given the fact that inflation amounts 0.58% in the United States, what will be the future value in dollars of the 950,000 Bolivian in 60 days?