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    Forward rate: is it expense or revenue? Discount or premium

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    A US exporter has a Thai baht account receivable resulting from an export sale on April 1 to a customer in Thailand. The exporter signed a forward contract on April 1 to sell Thai baht and designated it as a cash flow hedge of a recognized Thai baht receivable. The spot rate was $0.022 on that date, and the forward rate was $0.023. Which of the following did the US exporter report in net income?

    a) discount expense
    b) discount revenue
    c) premium expense
    d) premium revenue

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    https://brainmass.com/business/discounted-cash-flows-model/forward-rate-net-income-239959

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    Forward rate

    A US exporter has a Thai baht account receivable resulting from an export sale on April 1 to a customer in Thailand. The exporter ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer which of the following did the US exporter report in net income.

    $2.19

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