On Oct 1, 2015, Short company ordered some equipment from a supplier for 200,000 euros. Delivery and payment will occur on Nov 30, 2016. The spot rates on Oct 1 and Nov 30 are $1.50 and $1.30 If the forward contract is acquired, what is the overall exchange gain or loss? a. $30,000 gain O b. $10,000 gain O c. $0 O d. $10,000 loss

On Oct 1, 2015, Short company ordered some equipment from a supplier for 200,000 euros. Delivery and payment will occur on Nov 30, 2016. The spot rates on Oct 1 and Nov 30 are $1.50 and $1.30 If the forward contract is acquired, what is the overall exchange gain or loss? a. $30,000 gain O b. $10,000 gain O c. $0 O d. $10,000 loss

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter11: Managing Transaction Exposure

Section: Chapter Questions

Problem 55QA

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