Situation:
June 4, you make an offsetting transaction, selling DM 500,000 for July 15 delivery forward at a rate of 0.83
What is the result?
a) You are free of any obligation with your bank.
b) You are free of any obligation and the bank credits your account.
No. You bought at 0.85 SFr/DM and you sold at 0.83, a loss of 0.02 SFr for each of the DM 500,000.
c) You are free of any obligation and the bank debits your account.
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