Solution-What amount of loss should the company report

What amount of loss should the company report

Reference no: EM133190045

Question - The following data applies to andi Company's purchase of 60,000 Belgium francs under a forward contract dated

November 30, 2021, for delivery on March 1, 2022:

	11/30/2021	12/31/2021	03/01/2022
Spot rates	55.75	53.90	54.50
30-day forward rate	51.30	56.15	53.20
60-day forward rate	57.65	52.30	55.75
90-day forward rate	54.25	55.45	52.10

andi Company entered into the forward contract to speculate in the foreign currency. In its Income Statement for the year ended December 31, 2021, what amount of loss should the company report from this forward contract?

Reference no: EM133190045

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What amount of loss should the company report

Reference no: EM133190045

Reference no: EM133190045

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