You Are a Financial Manager with ICN,Co

question 20

Multiple Choice

You are a financial manager with ICN,Co.and you have used a forward contract to hedge a yen 100,000,000 payment the company expects in 90 days.Your contract calls for you to deliver yen at 111.25 yen per U.S.dollar.Suppose the spot rate at that time is 109.75 yen per U.S.dollar.Did you gain or lose on the hedge? How much?

• A) Gain,$12,285.33
• B) Loss,$12,285.33
• C) Gain,$66,666.67
• D) Loss,$66,666.67

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A tax levied by governments on individuals or entities based on their income or profits.

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At each stage of production, the selling price of a product minus the cost of intermediate goods purchased from other firms.

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A high-end dining establishment known for its quality cuisine, superior service, and often, a refined atmosphere.

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The components or elements that are combined to create a product, often used in the context of cooking or manufacturing.