On December 12, 2022, Tin Company entered into a forward exchange contract to purchase 500,000 euros in 90 days.The relevant exchange rates are as follows: Spot rate Forward rate (for 3/12/2023) November 30, 2022 P0.56 P0.57 December 12, 2022
On December 12, 2022, Tin Company entered into a forward exchange contract to purchase 500,000 euros in 90 days.The relevant exchange rates are as follows:
Spot rate Forward rate (for 3/12/2023)
November 30, 2022 P0.56 P0.57
December 12, 2022 P0.57 P0.58
December 31, 2022 P0.61 P0.60
March 12, 2023 P0.62 P0.62
The purpose of this forward contract is to hedge a purchase of inventory in November 30, 2022, payable in March 2023.
How much is the net forex gain/loss December 31, 2022? (just encode the absolute amount)
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