Forward Contract Assignment
In January 2019, Dell has entered into a forward contract to sell €20 millions with a delivery date in December 2020. In May 2019 Dell wants to cancel its short position. Which statement is most accurate?
Dell has signed the forward contract so it cannot cancel the position in anyway.
Dell can cancel its position by taking a long position in a new forward contract on 20 millions with the same delivery date in December 2020.
Dell can cancel the forward contract because the delivery time is in 2020.
Dell can cancel its position by taking a short position in a new forward contract on €20 millions with the same delivery date in December 2020.
Question 25 (2.5 points) New Century is a young company. It does not have any foreign subsidiaries. New Century is not subject to
translation exposure
transaction exposure
economic exposure. Get Finance homework help today