ABC Corporation agreed that it will buy 1,000 USD at an exchange rate of P52.00 one month from now. On the transaction date, the buying spot rate is P51.80 and the selling spot rate is P52.15. How much is the net gain/(loss) based on the information above?

Problem 2: ABC Milling Inc. agreed to sell 2,000 tons of flour at a price of P12,000 per ton six months from now. The selling price of flour per ton on that day is P12,500. How much will ABC receive as cash from the sale of flour?

Problem 3: The underlying asset of a long futures contract is 1,000 shares of Ayala Corp. Strike price is P300 per share. On the agreed date, the market value is P330 per share. How much is the gain/(loss) relating to the contract?

Answer rating: 100% (QA)

1 Net GainLoss on Currency Exchange 1 The agreed exchange rate for buying USD is P5200 2 The buying spot rate on the transaction date is P5180 which i... View the full answer