Question

.On 1st June X Corp entered a 4 months forward contract in respect of a share market investment obligations of $ 500000. Face value 100 each.The price on various dates are given below 1st June 31th July 31st Aug 30th Sep
Spot rate 96.65 107.00 108.02 109.94 Forward 4 months 3 months 2 months 1 month Forward Rate 106.72 107.30 108.12 109.10 Forward month 2 months 1 month
Forward rate 107.05 107.48
What would happens if a. On 30st Sep X corp honors the contract.
b. On 31st July X corp cancel the contract
c. On 31st July X corp roll over the contract for 3 months.
d. On 30st Sep X corp roll over the contract for 1 months.
. e. On 30th Aug X corp roll over the contract for 2 months

Answer 1

Answer:

d option hope it helps you