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Tacoma Co. anticipates that it will need Australian $ in March when it orders suppliers from an Australian supplier. On 1/10, Tacoma Co. purchases a
Tacoma Co. anticipates that it will need Australian $ in March when it orders suppliers from an Australian supplier. On 1/10, Tacoma Co. purchases a future specifying A$100,000 and a settlement date 3/19 at the price of $0.53 per A$ On 2/19, Tacoma realizes that it will not need to order supplier because it has reduced its production levels. It sells a futures contract on A$100,000 with a 3/19 settlement date at the rate of $0.50 per A$ to offset the contract it purchased on 1/10. Does Tacoma gain or lose? How much?
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