On June 1, 20X4, Chua (Canada)Co

question 45

Multiple Choice

On June 1, 20X4, Chua (Canada) Co. entered into a 90-day forward contract to sell $500,000 Singapore dollars (SGD) to its bank on August 29, 20X4. The following information has been provided:
June 1, 90-day forward rate SGD$1 = $0.7750
July 1, 60-day forward rate SGD$1 = $0.7630
August 29, spot rate SGD$1 = $0.748
-
Chua has a June 30 year-end. What is the net exchange gain (loss) on the contract?

• A)$(13,500)
• B)$(6,000)
• C)$6,000
• D)$13,500

---

Definitions:

Cancerous Thyroid Nodule

A malignant lump or growth in the thyroid gland, which can affect hormone production and requires medical evaluation.

Adam's Apple

The protrusion in the neck, more prominent in males, formed by the thyroid cartilage surrounding the larynx.

Mobile and Soft

Describes physical characteristics such as the ability to move easily and the quality of being pliable or not hard to the touch.

Parotid Gland

A major salivary gland located on each side of the face, responsible for producing saliva to aid in digestion.