Car corp.(a U.S.-based company) sold parts to a Korean customer on December 16, 2011, with payment of 10 million Koren won to be receive on January 15, 202. the following exchange rates applied:
spot rate forward rate to 1/15
Date: 12/16/2011 0.00092 0.00098
12/31/2011 0.00090 0.00093
1/15/2012 0.00095 0.00095
Assuming a forward contract was entered into, what would be the net impact on Car Corp's 2011 income statement related to this transaction? assume an annual interest rate of 12% and a fair value hedge. The present value for one month at 12% is .9901
The answer is 295 (gain)
could you show me how to get this answer?