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Atherton, Inc

question 33

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Atherton, Inc., a U.S.company, expects to order goods from a foreign supplier at a price of 100,000 lira, with delivery and payment to be made on April 17.On January 17, Atherton purchased a three-month call option on 100,000 lira and designated this option as a cash flow hedge of a forecasted foreign currency transaction.The following exchange rates apply: Option Strike Price $ 4.34
Option Cost $5,000
January 17 Spot Rate $ 4.34
April 17 Spot Rate $ 4.26
What amount will Atherton include as an option expense in net income for the period January 17 to April 17?

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Definitions:

Solidarity

A sense of unity and mutual support within a group, often seen in social movements or between individuals sharing common goals or interests.

Cohesion

The act or state of sticking together tightly; in social groups, it refers to the bonds that keep group members united.

Self-Rejection

The negative evaluation or disapproval of oneself, which can lead to decreased self-esteem and mental health issues.

Deviant Behavior

Acts that deviate from the norms, values, or expectations of a society or community.

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