Question: Johnson, Inc., a U.S.-based MNC, will need to sell 10 million Thai baht on August 1 . It is now May 1 and Johnson has

 Johnson, Inc., a U.S.-based MNC, will need to sell 10 million

Johnson, Inc., a U.S.-based MNC, will need to sell 10 million Thai baht on August 1 . It is now May 1 and Johnson has negotiated a short position in a non-deliverable forward contract (for 10 million Thai baht) with its bank at the forward rate of $0.10 per baht maturing on August 1.T non-deliverable currency is the Thai baht and the settlement currency is the US dollar. The spot rate on the maturity date is $0.15 per baht. What is the profit or loss from the position? A) $500,000 B) $500,000 C) $250,000 D) $250,000

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