On June 1, 20X4, Chua (Canada)Co. entered into a 90-day forward contract to sell $500,000 Singapore dollars (SGD)to its bank on August 29, 20X4. 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 = $0.748
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Chua has a June 30 year-end. What is the exchange gain (loss)at June 30, 20X4?
A)$(6,000)
B)$0
C)$1,500
D)$6,000

Question

On June 1, 20X4, Chua (Canada)Co. entered into a 90-day forward contract to sell $500,000 Singapore dollars (SGD)to its bank on August 29, 20X4. 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 = $0.748
-
Chua has a June 30 year-end. What is the exchange gain (loss)at June 30, 20X4?
A)$(6,000)
B)$0
C)$1,500
D)$6,000

Quizplus · Accepted Answer

The Answer of On June 1, 20X4, Chua (Canada)Co. entered into a 90-day forward contract to sell $500,000 Singapore dollars (SGD)to its bank on August 29, 20X4. 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 = $0.748
-
Chua has a June 30 year-end. What is the exchange gain (loss)at June 30, 20X4?
A)$(6,000)
B)$0
C)$1,500
D)$6,000