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Levin company entered into a forward contract to speculate in the foreign currency. It sold 100,000 foreign currency units under a contract dated November 1,
Levin company entered into a forward contract to speculate in the foreign currency. It sold 100,000 foreign currency units under a contract dated November 1, 20X8, for delivery on January 31, 20X9:
| 11/1/20X8 | 12/31/20X8 |
Spot rates | $0.035 | $0.037 |
30-da forward rate | 0.034 | 0.036 |
90-day forward rate | 0.033 | 0.035 |
In its income statement for the year ended December 31, 20X8, what amount of loss should Levin report from this forward contract?
a) $0
b) $300
c) $200
d) $100
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