2. On 30th June 2009 when a forward contract matured for execution you are asked by an importer customer to extend the validity of the forward sale contract for US$ 10,000 for a further period of three months.

Contracted Rate US$1 = Rs.41.87

The US Dollar quoted on 30.6.2009

Spot Rs. 40.4800/Rs. 40.4900

Premium July 0.1100/0.1300

Premium August 0.2300/0.2500

Premium September 0.3500/0.3750

Calculate the cost for your customer in respect of the extension of the forward contract.

Rupee values to be rounded off to the nearest Rupee.

Margin 0.080% for Buying Rate

Margin 0.25% for Selling Rate

The answer should be a min of 800 Words with plagiarism-free.