On December 1, 2013, Keenan Company, a U Compute the Fair Value of the Foreign Currency Option at Merchandise

question 4

Multiple Choice

On December 1, 2013, Keenan Company, a U.S. firm, sold merchandise to Velez Company of Canada for 150,000 Canadian dollars (CAD) . Collection of the receivable is due on February 1, 2014. Keenan purchased a foreign currency put option with a strike price of $.97 (U.S.) on December 1, 2013. This foreign currency option is designated as a cash flow hedge. Relevant exchange rates follow: $\begin{array}{|l|c|c|}\hline {\text { Date }} & \text { Spot Rate } & \text { Option Premium } \\\hline \text { December 1,2013 } & \$ .97 & \$ .05 \\\hline \text { December 31,2013 } & \$ .95 & \$ .04 \\\hline \text { February 1,2014 } & \$ .94 & \$ .03 \\\hline\end{array}$ Compute the fair value of the foreign currency option at December 1, 2013.

• A)$6,000.
• B)$4,500.
• C)$3,000.
• D)$7,500.
• E)$1,500.

Understand the role and significance of trait-based assessments in contemporary organizations for hiring and promotion decisions related to leadership.

Recognize the ongoing interest and research in the study of leadership traits.

Identify intelligence as a leadership trait and understand its relationship with leadership effectiveness.

Comprehend different theories of leadership such as implicit leadership theory, leadership categorization theory, and role congruity theory, and their implications for understanding leadership and prejudice.

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Definitions:

High-pitched Sounds

Sounds that have a high frequency, typically perceived by the ear as having a higher note or sharper tone.

Auscultation

The act of listening to the sounds made by internal organs of the body, usually with a stethoscope, for medical diagnosis.

Tender Areas

Specific regions on the body that are sensitive or painful to touch, often indicating inflammation or underlying medical conditions.