Strawberry Company of United Kingdom which closes its account on 31st December every year. Purchased goods from Goosebery Co., Ltd of Australia on 15th September amounting to A$3000 on three month term. The exchange rate as follows: 30th September = 1A$ = OMR 3.63 15th October = 1A$ = OMR 3.62 30th October = 1A$ = OMR 3.65 What is the exchange rate position in 15th October? Select one: O a. Gain on exchange rate OMR 30 O b. OMR 10,890 O c. Loss on exchange rate OMR 30 O d. Gain on exchange rate OMR 90

Strawberry Company of United Kingdom which closes its account on 31st December every year. Purchased goods from Goosebery Co., Ltd of Australia on 15th September amounting to A$3000 on three month term. The exchange rate as follows: 30th September = 1A$ = OMR 3.63 15th October = 1A$ = OMR 3.62 30th October = 1A$ = OMR 3.65 What is the exchange rate position in 15th October? Select one: O a. Gain on exchange rate OMR 30 O b. OMR 10,890 O c. Loss on exchange rate OMR 30 O d. Gain on exchange rate OMR 90

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter10: Measuring Exposure To Exchange Rate Fluctuations

Section: Chapter Questions

Problem 2ST

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