On June 1, 2013, Donlands Canada Co

Multiple Choice

On June 1, 2013, Donlands Canada Co. entered into a 90-day forward contract to sell $500,000 Singapore dollars (SGD) to its bank on August 29, 2013. The following information has been provided:

June 1, 90-day forward rate SGD$1 = $0.7750
July 1, 60-day forward rate SGD$1 = $0.7630
August 29, spot rate SGD$1 = $0.748
Donlands has a June 30 year-end. What is the exchange gain (loss) at June 30, 2013?

A) $(6,000)
B) $6,000
C) $0
D) $1,500