Multiple Choice
On June 1, 2013, Vandelay Co. entered into a 90-day forward contract to sell $1,000,000 Singapore dollars (USD) to its bank on August 29, 2013. The following information has been provided:
June 1, 90-day forward rate USD$1 = $0.9750
June 30, 60-day forward rate USD$1 = $0.9630
August 29, spot rate USD$1 = $0.948
Vandelay has a June 30 year-end. What is the exchange gain (loss) at June 30, 2013?
A) $(12,000)
B) $(27,000)
C) $(15,000)
D) $12,000
Correct Answer:
Verified
Correct Answer:
Verified
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