Golden Doors enters into a forward exchange rate contract to purchase US$300 000 on 1 September...

Transcribed Image Text:

Golden Doors enters into a forward exchange rate contract to purchase US$300 000 on 1 September at a rate of A$1 = US$0.69. On 2 September Golden Doors takes delivery of inventory from its US supplier at a price of US$300 000. On 2 September A$1 = US$ 0.65. Calculate the amount Golden %3D Doors would have paid on 2 September in A$ if it had not entered into the forward exchange rate contract, and any gain or loss it has made (rounded to the nearest dollar). a. cost in A$434 782; loss of $134 782 O b. cost in A$434 782; loss of $26 756 O c. cost in A$461 538; gain of $161 538 O d. cost in A$461 538; gain of $26 756 Golden Doors enters into a forward exchange rate contract to purchase US$300 000 on 1 September at a rate of A$1 = US$0.69. On 2 September Golden Doors takes delivery of inventory from its US supplier at a price of US$300 000. On 2 September A$1 = US$ 0.65. Calculate the amount Golden %3D Doors would have paid on 2 September in A$ if it had not entered into the forward exchange rate contract, and any gain or loss it has made (rounded to the nearest dollar). a. cost in A$434 782; loss of $134 782 O b. cost in A$434 782; loss of $26 756 O c. cost in A$461 538; gain of $161 538 O d. cost in A$461 538; gain of $26 756

Answer rating: 100% (QA)

D Cost in A 461538 gain of 26756 Solution Amount would be paid on 2 Sep in A if company not en... View the full answer