alleryStart learning →Spot rate is Rs 80 and the forward rate Rs 82 for a USD 10,000 hedge contract. Premium?
ARs 82,000
BRs 8,20,000
CRs 20,000
DRs 2,000
Answer & Solution
Correct answer: C. Rs 20,000
The premium is USD 10,000 x (82 - 80) = Rs 20,000, to be amortised over the contract life.
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