Multiple Choice
A U.S. company has a forward purchase contract for delivery of euros at the end of May at a price of $1.24/€. The U.S. dollar strengthens against the euro during this period. The company will:
A) Gain on the forward purchase contract
B) Lose on the forward purchase contract
C) Not exercise the forward purchase contract
D) Continue to hold the forward contract after the end of May
Correct Answer:
Verified
Correct Answer:
Verified
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