On 20.10.2024, the credit balance of an Indian bank in NOSTRO account with LMN Bank in London was £ 1,60,000 and the overbought position was £…
CA Final · Advanced Financial Management · MTP · May 2025
On 20.10.2024, the credit balance of an Indian bank in NOSTRO account with LMN Bank in London was £ 1,60,000 and the overbought position was £ 1,00,000. During the day, the following transactions have taken place. Events Time Amount (£) DD Purchased 11:08 50,000 Purchased a bill on London 11:50 150,000 Sold forward TT 13:15 100,000 Forward purchased contract cancelled 13:55 50,000 Remitted by TT 14:45 85,000 Draft in London cancelled 15:00 40,000 Based on the above scenario, choose the most appropriate answer for the following multiple-choice questions:
Suggested Answer and Working Notes:
Correct Answer: Option (D)
£ 50,000
Topics: Foreign Exchange Exposure and Risk Management
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