Question
P Company enters into a forward contract to sell foreign currency.At the contract date, the forward rate is $1.20 and the spot rate is $1.24.BRIEFLY
P Company enters into a forward contract to sell foreign currency.At the contract date, the forward rate is $1.20 and the spot rate is $1.24.BRIEFLY explain why this may not appear to be logical (and it doesn't), and why would P want do that.
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
2nd Canadian Edition
0471413658, 978-0471413653
