October 30, 2023 November 1, 2023 December 31, 2023 April 30, 2024 Spot Rate $1.130 1.148 1.100 1.170 Forward Rate for April 30, 2024 Delivery $1,140 a $500 net loss b. 1800 net gain c$800 net loss d$500 net gain 1.145 1.165 1.170 the euro to answer the question On October 30, 2023, a US company receives a purchase order from a customer in Spain. Under the sale terms, the customer will pay the company €100.000 on April 30, 20 U.S. company also enters a forward contract to sell €100,000 on April 30, 2024. The company delivers the merchandise to the customer on November 1, On April 30, the comp from the customer and sells it using the forward contract. The company's accounting year ends December 31. What net gain or loss is recognized in 2023, in addition to sales revenue? Select one
October 30, 2023 November 1, 2023 December 31, 2023 April 30, 2024 Spot Rate $1.130 1.148 1.100 1.170 Forward Rate for April 30, 2024 Delivery $1,140 a $500 net loss b. 1800 net gain c$800 net loss d$500 net gain 1.145 1.165 1.170 the euro to answer the question On October 30, 2023, a US company receives a purchase order from a customer in Spain. Under the sale terms, the customer will pay the company €100.000 on April 30, 20 U.S. company also enters a forward contract to sell €100,000 on April 30, 2024. The company delivers the merchandise to the customer on November 1, On April 30, the comp from the customer and sells it using the forward contract. The company's accounting year ends December 31. What net gain or loss is recognized in 2023, in addition to sales revenue? Select one
Chapter9: Forecasting Exchange Rates
Section: Chapter Questions
Problem 15QA
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Question
Transcribed Image Text:Use the following information on the U.S. dollar value of the euro to answer the question.
Forward Rate for
Spot Rate April 30, 2024 Delivery
$1.130
$1,140
October 20, 2023
November 1, 2023
December 31, 2023
April 30, 2024
Select one:
1.148
1.100
1.170
On October 30, 2023, a US company receives a purchase order from a customer in Spain. Under the sale terms, the customer will pay the company €100.000 on April 30; 2024 On October 30, the
US company also enters a forward contract to sell €100,000 on April 30, 2024. The company delivers the merchandise to the customer on November 1, On April 30, the company receives €100,000
from the customer and sells it using the forward contract. The company's accounting year ends December 31.
What net gain or loss is recognized in 2023, in addition to sales revenue?
esc
a $500 net loss
b. 1800 net gain,
c. $800 net loss
d. $500 net gain
3.145
1165
1.170
*
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