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In 2019, Oman industrial company made an agreement with a German company to buy a machine worth 2480447 EURO () and payment will be made
In 2019, Oman industrial company made an agreement with a German company to buy a machine worth 2480447 EURO () and payment will be made to the German company one year later. The exchange rate was 0.4550 OMR/ . The Oman industrial company decided to hedge the entire value of the machine in anticipation of an increase in the value of the euro by entering into a forward contract to buy the euro from Bank Muscat at 0.4650 OMR/. In 2020, The Oman industrial company executed the forward contract and made a net loss of -19941. you are requested to determine the actual rate of OMR/ that the company executed. Select one: O a. 0.4570 OMR/ O b. All the given choices are not correct O c. 0.4470 OMR/ O d. 0.4220 OMRIE
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