On October Year Versatile Company contracted to sell merchandise to a customer in Switzerland at a selling price of CHF The contract called for the merchandise to be delivered to the customer on January Year with payment due on delivery. On October Year Versatile arranged a forward contract to deliver CHF on January Year at a rate of CHF$ Versatile's yearend is December
The merchandise was delivered on January Year and CHF was received and delivered to the bank.
Exchange rates were as follows:
tableOctober Year Spot Rates,Forward RatesDecember Year CHF$CHF$
