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Please help with the part I got wrong (it is highlighted) 2nd time posting same request so please help! Hedging Exposed Liability Position On March
Please help with the part I got wrong (it is highlighted)
2nd time posting same request so please help!
Hedging Exposed Liability Position On March 15, 2023, Hunt Brands, a U.S. company, purchased merchandise from a South African company at a price of R1,000,000, payable in two months in rands. To hedge its exposed liability position, Hunt entered a forward contract for purchase of R1,000,000 on May 15 , 2023. On May 15 , Hunt closed the forward contract and used the rands to pay its supplier. The merchandise was sold to a U.S. customer for $110,000 in cash on June 5,2023 . Hunt's accounting year ends December 31. Exchange rates (\$/R) are as follows: b. Calculate the cash gain or loss realized by Hunt Brands by hedging compared with not hedgingStep by Step Solution
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