The Inter Banking Rates on 28 th June, 2025 were as follows: Spot US$1 = 86.50/55 1 Month forward premium 5/8 On 1 st May, 2025, Mr. M an exporter…
CA Final · Advanced Financial Management · PYQS · January 2026
The Inter Banking Rates on 28 th June, 2025 were as follows: Spot US$1 = 86.50/55 1 Month forward premium 5/8 On 1 st May, 2025, Mr. M an exporter enters into a forward contract with DMP Bank to sell US $ 2,50,000 on 31 st July, 2025 at the rate US $1 = 86.80. However, Mr. M received the amount on 28 th June, 2025. Mr. M requested the bank to take the delivery of the remittance on 30 th June, 2025 i.e. before due date. Note 1. Consider 365 days in a year. Note 2. Prevailing Prime Lending Rate is 15% p.a. From the information given above, choose the correct answer to the Question No. 4 to 6:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
(B) ₹ 32,500
Topics: Foreign Exchange Exposure and Risk Management
Related Questions in this Topic
- ABN-Amro Bank, Amsterdam, wants to purchase ₹ 80 million for funding its account with Canara Bank, New Delhi. Out of th...
- ABC Ltd., a UK firm, has a receivable $ 20 Million due in 6 months. The company wants to cover full exposure. Following ...
- XYZ Ltd., an Indian company engaged in both export and import business, has secured a service contract in the United Sta...
- 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 ove...
- An Indian exporting firm, Radhey & Sons exported dry fruits worth of AUD 1 million to an importer in Sydney. Radhey and ...