Page 1 of 1 | AFAR

REO Free Seminar & Webinar

Louie Gene G. Marasigan, CPA, CMA, MBA

Foreign Currency Transactions,

Derivatives, and Hedging
AFAR Marathon: Back to Back to Back Free Webinar Series

Korean Won Direct Quotations:

11.10.24 12.7.24 12.31.24 2.9.25 3.9.25

Spot 0.035 0.044 0.043 0.039 0.048
30-day 0.037 0.043 0.040 0.038 0.047
60-day 0.039 0.042 0.045 0.040 0.046
90-day 0.041 0.044 0.044 0.041 0.044
120-day 0.045 0.041 0.042 0.043 0.045

Illustrative Problems:

Problem #1. On November 10, 2024, Loo Wee Jin acquired 1,000 units of inventory from LGM Corporation. The selling
price is KRW 2,000 per unit, settlement of which is due on March 9, 2025. Loo Wee Jin is risk averse, which is why he
entered into a forward contract on the same date with a financial institution to purchase KRW 2,000,000 on March 9,
2025.

Problem #2. On December 7, 2024, Wee Nun-Si sold inventory to WMG Corporation for an invoice price of KRW
1,000,000, to be paid on February 9, 2025. To protect Mr. Wee from expected unfavorable fluctuations of the foreign
exchange rates, he entered into a forward contract on the same date to sell KRW 1,000,000 on February 9, 2025.

Problem #3. On November 10, 2024, Da Hyan Corporation is anticipating a purchase of a piece of equipment on
February 9, 2025, with an invoice price of KRW 20,000,000 from DMF Corporation. On the same day, Da Hyan entered
into a forward contact to purchase KRW 20,000,000 from a financial institution on February 9, 2025.

Problem #4. On December 7, 2024, Ji Hyor-Ji entered into a purchase commitment with GJ Corporation to purchase a
piece of machinery, due for delivery and payment on March 9, 2025. The invoice price of the machinery is KRW
10,000,000. On the same date, Ji Hyor-Ji entered into a forward contract with a financial institution to purchase KRW
10,000,000 on March 9, 2025.

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