Question
I enter into a non-deliverable binding forward contract to buy $1 million for Chinese yuan in one year for yuan 6.44/$, One year later the
I enter into a non-deliverable binding forward contract to buy $1 million for Chinese yuan in one year for yuan 6.44/$, One year later the spot rate settles at yuan 6.00 / $. My gain or loss is:
a.gain of $ 440,000
b.loss of $ 440,000
c.gain of $ 440,000
d.loss of RMB 440,000
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Cornerstones of Financial and Managerial Accounting
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-1111879044
