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?

b) Call up your bank to cancel the contract.
No. Now there is a legal problem: you signed a contract which you must honour. You can only "cancel" the initial contract if you negotiate another contract which offsets your prior obligations.
c) Negotiate a forward sale of DM 500,000 for July 15.