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AFP CTP Exam - Topic 5 Question 28 Discussion

A company agrees to pay 10,000,000 for a shipment from Japan. At the time the purchase order is placed the exchange rate is 168/US$. At the time of payment the exchange rate is 163/US$. What is the net effect on the dollar cost of the shipment if the transaction has NOT been hedged?
B) An increase of $1,825
A) An increase of $5,000
C) A decrease of $5,000
D) A decrease of $1,825

AFP CTP Exam - Topic 5 Question 28 Discussion

Actual exam question for AFP's CTP exam
Question #: 28
Topic #: 5
[All CTP Questions]

A company agrees to pay 10,000,000 for a shipment from Japan. At the time the purchase order is placed the exchange rate is 168/US$. At the time of payment the exchange rate is 163/US$. What is the net effect on the dollar cost of the shipment if the transaction has NOT been hedged?

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Suggested Answer: B

by Merissa at Aug 17, 2026, 10:18 AM

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