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What is the notional value of the us dollar forward contract

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Question - On November 2, 2030, Skid Row Corp. purchased goods from Megadeth Inc. for $180,000 to be paid on January 30, 2031. The exchange rate on November 2, 2030 is P1 = $0.20. On the same date, Skid Row, enters into a forward contract and agreed to buy $180,000 on January 30, 2031 from Metrobank at a forward rate of P1 = $0.19. On December 31, 2030 and January 30, 2030, the exchange rate are P1 = $0.25 and P1 = $0.22, respectively while the forward rate on December 31, 2030 and January 30, 2031 are P1 = $0.24 and P1 = $0.235, respectively.

What is the notional value of the US dollar forward contract?

What is the amount of net foreign exchange gain (loss) on December 31, 2030?

Reference no: EM133182684

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