On December 1, 20X5, Gillard Ltd

question 21

Multiple Choice

On December 1, 20X5, Gillard Ltd. sold goods to International Traders Ltd., a company located in Switzerland, for 500,000 Swiss francs (CHF) . At the date of sale, the spot rate was CHF1 = $1.0329. On the same date, Gillard acquired a 90-day forward contract at a rate of CHF1 = $1.0315. On March 1, 20X6, Gillard received full payment from International Traders and delivered the Swiss francs in execution of the forward contract. The spot rate at March 1, 20X6, was CHF1 = $1.0287. Assume that Gillard has a December 31 year-end and that the spot rate on that date was CHF1 = $1.0302. At December 31, the forward rate for a 60-day contract was CHF1 = 1.0394.
-At December 31, what is the balance of Gillard's forward contract payable?

• A)$515,000
• B)$515,650
• C)$515,750
• D)$515,850

---

Definitions:

Misinformation

False or inaccurate information that is spread unintentionally.

Transference

In psychoanalysis, the process by which patients transfer feelings they have about figures from their past onto their therapist.

Unconscious Emotions

Feelings that influence an individual's thoughts and actions without their conscious awareness.

Repression

In psychoanalytic theory, the selective, involuntary pushing of threatening or upsetting information into the unconscious.