What information is needed to determine the fair value of a foreign currency forward contract?
A. The forward rate at the date the contract was entered
B. The current forward rate for a contract that matures on the same dates as the forward contract that was entered into
C. A discount rate to determine the present value of the contract
D. All of the above information is needed
Answer:D
What information is needed to determine the fair value of a foreign currency forward contract?
A. The forward rate at the date the contract was entered B. The current forward rate for a contract that matures on the same dates as the forward contract that was entered into C. A discount rate to determine the present value of the contract D. All of the above information is needed