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Which of applies if an australian company enters a forward

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Reference no: EM132616333

Problem 1: If an Australian company enters a forward exchange contract to buy US$15,000, then which of the following applies?

a. The company has a contractual right to receive US$15,000 at the settlement date and that right is an asset fixed in A$ at the forward rate

b. The company's forward contract will act as a hedge against a recognized asset

c. The company's contractual obligation (at the forward rate) and contractual right (at the spot rate) are settled on a net basis

d. The company has a contractual obligation to deliver foreign currency at the settlement date and that obligation is realized at the spot rate

Reference no: EM132616333

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