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Assuming a Forward Contract Was Entered Into, the Foreign Currency

Question 2

Multiple Choice

Assuming a forward contract was entered into, the foreign currency was originally sold in the foreign currency market on December 16, 2018 at a


A) Forward contract discount $ 600.
B) Forward contract premium $ 600.
C) Forward contract discount $ 980.
D) Forward discount premium $ 980.
E) There is no premium or discount because the fair value of the contract is zero.

Correct Answer:

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