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CTP · Question #735
CTP Question #735: Real Exam Question with Answer & Explanation
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.
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