An Australian Exporter Has Despatched a Consignment to the USA

question 80

Multiple Choice

An Australian exporter has despatched a consignment to the USA and expects to receive payment of USD 250 000 in three months' time.The company wishes to hedge part of its exposure to the USD,and enters into a forward exchange contract with its bank,based on the amount USD 125 000.Based on today's data (below) ,what amount in AUD will the company receive in three months' time?
Spot rate:
AUD/USD 0.7345-50
Three-month forward rate:
AUD/USD 0.7430-35

• A) AUD 340 136.05
• B) AUD 340 367.60
• C) AUD 336 473.76
• D) AUD 336 247.48

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To protect from harm or attack, or to support a position or argument against criticism or objection.

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