AFP
CTP · Question #735
(Topic 8) A U.S. company is selling product for US$10,000 to a Canadian company with payment in Canadian dollars. The exchange rate has been booked at C$1.45/US $1 for payment upondelivery in 15…
The correct answer is B. forward transaction at a discount. See the full explanation below for the reasoning.
Question
- (Topic 8)
A U.S. company is selling product for US$10,000 to a Canadian company with payment in Canadian dollars. The exchange rate has been booked at C$1.45/US $1 for payment upondelivery in 15 days. The Canadian dollar is forecasted to weaken within this period. This is an example ofA.
Options
- Aforward transaction at a premium.
- Bforward transaction at a discount.
- Cspot transaction at a premium.
- Dspot transaction at a discount.
How the community answered
(45 responses)- A7% (3)
- B71% (32)
- C4% (2)
- D18% (8)
Community Discussion
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