What Is the Amount of the Forward Contract in Canadian

question 11

Multiple Choice

What is the amount of the forward contract in Canadian dollars?

• A) $686,700.
• B) $697,500.
• C) $701,400.
• D)$703,500.

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Definitions:

Principal and Agent

A relationship where the principal grants authority to the agent to act on the principal’s behalf in dealing with third parties.

Insurance

A financial product offering protection against possible future losses or damages in exchange for premium payments.

Trusts

Legal arrangements where one person, the trustee, holds property for the benefit of another, the beneficiary, according to the terms of the trust document.

Customary Compensation

Refers to the typical or usual payment made for a service or to fulfill a contractual obligation.