Chapter 01 · Section 1.1

Swiss Importer - 3

Here is your problem: You do not need the DM 500,000 which you agreed to buy from your bank.

What should you do?

a) Take them anyway in July
No. This is the same problem as we had before: what are you going to do with half a million Deutsche marks which you do not need at that time?
b) Call up your bank to cancel the contract.
c) Negotiate a forward sale of DM 500,000 for July 15.