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

question 4

Multiple Choice

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

On December 1, 2014, Thomas Company, a U.S. corporation, purchases inventory from a vendor in Italy for 400,000 euros. Payment is due in 90 days. To hedge the transaction, Thomas signs a forward contract to buy 400,000 euros in 90 days at $1.3670. Thomas uses a discount rate of 6% (present value factor for 30 days = .9950; 60 days = .9901; 90 days = .9851) . Assume the forward contract will be settled net and this is a cash flow hedge. Currency exchange rates are shown below:


-What is the fair value of the forward contract at January 30?

• A)$796 liability
• B)$796 asset
• C)$800 liability
• D)$800 asset

Recognize the role of higher education (university degrees, doctorates) in specialized fields related to organizational success.

Evaluate the suitability of different organizational structures for a specialized service firm.

Develop critical thinking on how organizational design impacts employee performance and project success.

Understand the criteria and specifiers for diagnosing substance-induced disorders in the DSM-5.

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Definitions:

Unconditioned Stimulus

In classical conditioning, this refers to a stimulus that naturally and automatically triggers a response without any prior learning.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, which can become a conditioned stimulus when used in classical conditioning.

Unconditioned Stimulus

In classical conditioning, an event that elicits a natural, reflexive response without the necessity of prior learning.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.