46-Mr. Ahmed has to make a payment of 5 million GBP to a UK company after 30 days for the purchase of goods. Mr. Ahmed expects risk of currency fluctuation and purchased the forward contract at OMRO.2500/GBP. On the maturity date, the current exchange rate is offered at OMRO.2000/GBP. Which one of the following is the gain/loss from the forward contract to

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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46-Mr. Ahmed has to make a payment of 5 million GBP to a UK company after 30 days for the purchase of goods. Mr. Ahmed expects risk of currency fluctuation and purchased the forward contract at OMRO.2500/GBP. On the maturity date, the current exchange rate is offered at OMRO.2000/GBP. Which one of the following is the gain/loss from the forward contract to Mr. Ahmed? O a. Ahmed losing OMR 125,000 due to currency forward contract O b. Ahmed gaining OMR 125,000 due to currency forward contract O c. None of the options O d. Ahmed losing OMR 100,000 due to currency forward contract
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