Multiple Choice
A firm buys AUD1 million, twelve months forward at the USD/AUD exchange rate of 0.5000. The spot rate at settlement is 0.4900.
How much will the firm gain or lose on the forward contract?
A) -AUD10 000
B) -USD10 000
C) AUD10 000
D) USD10 000
Correct Answer:
Verified
Correct Answer:
Verified
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