The following information applies to Datu Corporation’s sale of 10,000 foreign currency units under a forward contract dated November 1, 2020 for delivery on January 21, 2021: November 1, 2020 December 31, 2020 Spot rates 30-day futures 90-day futures P0.80 0.79 0.78 P0.83 0.82 0.81
The following information applies to Datu Corporation’s sale of 10,000 foreign currency units under a forward contract dated November 1, 2020 for delivery on January 21, 2021: November 1, 2020 December 31, 2020 Spot rates 30-day futures 90-day futures P0.80 0.79 0.78 P0.83 0.82 0.81
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information applies to Datu Corporation’s sale of 10,000 foreign currency units under a forward contract dated November 1, 2020 for delivery on January 21, 2021:
November 1, 2020 |
December 31, 2020 |
|
Spot rates 30-day futures 90-day futures |
P0.80 0.79 0.78 |
P0.83 0.82 0.81 |
Datu entered into a forward contract to speculate in the foreign currency.
6. In Datu’s income statement for the year December 31, 2020,
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