Car Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2013, with payment of 10 million Korean won to be received on January 15, 2014. The following exchange rates applied: 
Assuming a forward contract was entered into, the foreign currency was originally sold in the foreign currency market on December 16, 2013 at a
A) forward contract discount $600.
B) forward contract premium $600.
C) forward contract discount $980.
D) forward discount premium $980.
E) There is no premium or discount because the fair value of the contract is zero.
Correct Answer:
Verified
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