Use the Following Information to Answer the Question(s) Below

question 26

Multiple Choice

Use the following information to answer the question(s) below.

On November 2, 2014, Bellamy Corporation sells product to their Danish customer. At the same time, Bellamy signed a forward contract to sell 200,000 Danish krone in ninety days to hedge the account receivable at $0.1905, the 90-day forward rate. The receivable is expected to be collected in ninety days. Assume the forward contract will be settled net and this is a fair value hedge. The related exchange rates are shown below:

-Assuming a present value factor of 1 for simplicity,what is the fair value of this forward contract on November 2?

• A)$-0-
• B)$100 asset
• C)$100 liability
• D)$38,100 asset

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Definitions:

Leadership Style

The manner and approach of providing direction, implementing plans, and motivating people within organizational settings.

Conscientious Labourers

Workers who are diligent, careful, and meticulous in their tasks, showing a high level of responsibility.

Fiedler's Contingency Theory

is a leadership theory proposing that a leader’s effectiveness is contingent upon how well the leader's leadership style matches the current context or environment.

Situational Theory

A leadership theory suggesting that the best leadership style depends on the specific situation, including factors like task structure, leader's power, and relationships.