Assuming a Forward Contract Was Entered Into, the Foreign Currency

question 88

Multiple Choice

Assuming a forward contract was entered into, the foreign currency was originally sold in the foreign currency market on December 16, 2018 at a

• A) Forward contract discount $ 600.
• B) Forward contract premium $ 600.
• C) Forward contract discount $ 980.
• D) Forward discount premium $ 980.
• E) There is no premium or discount because the fair value of the contract is zero.

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Definitions:

DSL

Digital Subscriber Line, a family of technologies that provides high-speed internet access over telephone lines.

Cable

A medium used for the transmission of television signals, internet communication, and power.

Coaxial Cable

Insulated copper wire; used to carry high-speed data traffic and television signals.

Cable

A medium used for transmitting electrical power or signals, consisting of one or more wires enclosed in a protective sheath.