Multiple Choice
On December 1, 2013, Rollings Ltd. sold goods to Federer Ltd., a company located in Switzerland for 500,000 Swiss francs (CHF) . At the date of sale, the spot rate was CHF1 = $1.0329. On the same date, Rollings acquired a 90-day forward contract at a rate of CHF1 = $1.0315. On March 1, 2014, Rollings receives full payment from Federer and delivered the Swiss francs in execution of the forward contract. The spot rate at March 1, 2014 was CHF1 = $1.0287. What amount should Rollings record for the sale?
A) $515,750
B) $500,000
C) $516,450
D) $514,350
Correct Answer:
Verified
Correct Answer:
Verified
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