The following data applies to Anie Company’s purchase of 60,000 Belgium francs under a forward contract dated November 30, 2021, for delivery on March 1, 2022: 11/30/2021 12/31/2021 03/01/2022 Spot rates 55.75 53.90 54.50 30-day forward rate 51.30 56.15 53.20 60-day forward rate 57.65 52.30 55.75 90-day forward rate 54.25 55.45 52.10 Anie Company entered into the forward contract to speculate in the foreign currency. In its Income Statement for the year ended December 31, 2021, what amount of loss should the company report from this forward contract?
The following data applies to Anie Company’s purchase of 60,000 Belgium francs under a forward contract dated November 30, 2021, for delivery on March 1, 2022: 11/30/2021 12/31/2021 03/01/2022 Spot rates 55.75 53.90 54.50 30-day forward rate 51.30 56.15 53.20 60-day forward rate 57.65 52.30 55.75 90-day forward rate 54.25 55.45 52.10 Anie Company entered into the forward contract to speculate in the foreign currency. In its Income Statement for the year ended December 31, 2021, what amount of loss should the company report from this forward contract?
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
Section: Chapter Questions
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The following data applies to Anie Company’s purchase of 60,000 Belgium francs under a forward contract dated
November 30, 2021, for delivery on March 1, 2022:
11/30/2021 12/31/2021 03/01/2022
Spot rates 55.75 53.90 54.50
30-day forward rate 51.30 56.15 53.20
60-day forward rate 57.65 52.30 55.75
90-day forward rate 54.25 55.45 52.10
Anie Company entered into the forward contract to speculate in the foreign currency. In its Income Statement for the year
ended December 31, 2021, what amount of loss should the company report from this forward contract?
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