What Was the Net Impact on Mattie's 2018 Income as a Result

question 69

Multiple Choice

What was the net impact on Mattie's 2018 income as a result of this fair value hedge of a firm commitment?

• A) $1,800.00 decrease.
• B) $1,760.60 decrease.
• C) $2,240.40 decrease.
• D) $1,660.40 increase.
• E) $2,240.60 increase.

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Definitions:

Gay-Lussac's Law

A gas law stating that the pressure of a given amount of gas varies directly with its absolute temperature, provided the volume is kept constant.

Temperature

A physical quantity that expresses the subjective perceptions of hot and cold, measured with a thermometer.

Temperature Rises

An increase in the degree of heat present in a substance or environment, often measured in Celsius or Fahrenheit.

Pressure

The force exerted per unit area on the surface of an object, often measured in pascals (Pa) or atmospheres (atm).