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Hi Sir, In this problem, Please confirm if my understanding is correct If forward contract was entered, then we would incur a loss of Rs 5 per USD If forward contract not entered (as in question), we will have a profit of Rs 5 per USD. But in either case, the value of Sales/ Revenue will be at 55 only. (Agreed Forward Rate / Forward Rate) Please correct me if I am wrong. Video Details Financial Instruments - FR Comprehensive Illustrations 4. Illustration 17

Screenshot 2024-04-27 150359.png

Susee Arunachalam

Susee Arunachalam

CA Final

26K+

27-Apr-24 15:06

45

Answers (3)

Best Answer

If forward contract is not entered, there is no profit. Its just that we did not incur that loss. Sale value is agreed forward rate.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

29-Apr-24 19:26

In this question forward contract is not entered.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

29-Apr-24 19:24

Okay sir thank you so much


Thread Starter

Susee Arunachalam

Susee Arunachalam

CA Final

26K+

29-Apr-24 19:30

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