On July 1,2014,Stagger Company sold some limited edition art prints to Wakaramas Company for ¥38,500,000 to be paid on September 30 of that year.The current exchange rate on July 1,2014,was ¥110=$1,so the total payment at the current exchange rate would be equal to $350,000.Stagger entered into a forward contract with a large bank to guarantee the number of dollars to be received.According to the terms of the contract,if ¥38,500,000 is worth less than $350,000,the bank will pay Stagger the difference in cash.Likewise,if ¥38,500,000 is worth more than $350,000,Stagger must pay the bank the difference in cash.
-Using the information above and assuming the exchange rate on September 30 is ¥105=$1,what amount will Stagger pay to,or receive from,the bank (rounded to the nearest dollar)?

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The Answer of On July 1,2014,Stagger Company sold some limited edition art prints to Wakaramas Company for ¥38,500,000 to be paid on September 30 of that year.The current exchange rate on July 1,2014,was ¥110=$1,so the total payment at the current exchange rate would be equal to $350,000.Stagger entered into a forward contract with a large bank to guarantee the number of dollars to be received.According to the terms of the contract,if ¥38,500,000 is worth less than $350,000,the bank will pay Stagger the difference in cash.Likewise,if ¥38,500,000 is worth more than $350,000,Stagger must pay the bank the difference in cash.
-Using the information above and assuming the exchange rate on September 30 is ¥105=$1,what amount will Stagger pay to,or receive from,the bank (rounded to the nearest dollar)?

On July 1,2014,Stagger Company Sold Some Limited Edition Art Prints