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AFP CTP Question # 292 Topic 30 Discussion

CTP Exam Topic 30 Question 292 Discussion:
Question #: 292
Topic #: 30

A U.S. company is selling product for US$10,000 to a Canadian company with payment in Canadian dollars. The exchange rate has been booked at C$1.45/US $1 for payment upon delivery in 15 days. The Canadian dollar is forecasted to weaken within this period. This is an example of A.


A.

forward transaction at a premium.


B.

forward transaction at a discount.


C.

spot transaction at a premium.


D.

spot transaction at a discount.


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