On August 1st of the Current Year, Lenz Company Writes

question 38

Multiple Choice

On August 1st of the current year, Lenz Company writes a contract agreeing to sell to Hindman Company 15,000 British pounds at a specific price of $0.69 per pound with delivery in 60 days.Throughout the 60-day period the forward rate varies as follows: ?

$\begin{array}{ll}60 \text { days remaining on the contract } & \$ 0.69 \\30 \text { days remaining on the contract } & \$ 0.68 \\0 \text { days remaining on the contract } & \$ 0.675\end{array}$
Assume an 8% discount rate for Lenz Company and Hindman Company.For the first 30 day period, Lenz Company would recognize a:

• A)$149 loss.
• B)$149 gain.
• C)$150 loss.
• D)$150 gain.

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Definitions:

GLOBE Project

A cross-cultural research project designed to understand and conceptualize the relationships between societal culture, organizational culture, and organizational leadership.

Charismatic/Value-Based

Leadership styles that rely on the personal appeal and inspirational qualities of the leader, often tied to the promotion of a set of core values.

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Involving or characterized by participation, especially in decision-making processes.

GLOBE Project

A cross-cultural research initiative examining the impact of culture on leadership effectiveness and organizational practices.