Golden Doors enters into a forward exchange rate contract to purchase US$300,000 on 1 September at a rate of $A1 = US$0.69.On 2 September Golden Doors takes delivery of inventory from its US supplier at a price of US$300,000.On 2 September $A1 = US$ 0.65.Calculate the amount Golden Doors would have paid on 2 September in $A if it had not entered into the forward exchange rate contract,and any gain or loss it has made (rounded to the nearest dollar):
A. Cost in $A434,782; loss of $134,782
A. Cost in $A461,538; gain of $161,538
B. Cost in $A434,782; loss of $26,756
D. Cost in $A461,538; gain of $26,756
E. None of the given answers.

Question

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The Answer of Golden Doors enters into a forward exchange rate contract to purchase US$300,000 on 1 September at a rate of $A1 = US$0.69.On 2 September Golden Doors takes delivery of inventory from its US supplier at a price of US$300,000.On 2 September $A1 = US$ 0.65.Calculate the amount Golden Doors would have paid on 2 September in $A if it had not entered into the forward exchange rate contract,and any gain or loss it has made (rounded to the nearest dollar):
A. Cost in $A434,782; loss of $134,782
A. Cost in $A461,538; gain of $161,538
B. Cost in $A434,782; loss of $26,756
D. Cost in $A461,538; gain of $26,756
E. None of the given answers.

Golden Doors Enters into a Forward Exchange Rate Contract to Purchase