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
Q10: Which of the following is NOT a
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Q13: Calculate the value of the contract at
Q14: Marking-to-market risk of futures trading arises from:
A)
Q16: A firm buys AUD1 million, twelve months
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Q18: A firm sells AUD1 million, twelve months
Q19: Two important functions carried out by futures
Q20: Theoretically, arbitrage ensures that:
A) the offer forward
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