Car Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2018, with payment of 10 million Korean won to be received on January 15, 2019. The following exchange rates applied:DateSpot RateForward Rate to Jan.15December 16, 2018$0.00092 $0.00098 December 31, 2018 0.00090 0.00093 January 15, 2019 0.00095 0.00095 ?Assuming a forward contract was entered into, the foreign currency was originally sold in the foreign currency market on December 16, 2018 at a:
A. Forward contract discount $980.
B. Forward contract discount $600.
C. Forward discount premium $980.
D. There is no premium or discount because the fair value of the contract is zero.
E. Forward contract premium $600.
Answer: E
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