REFERENCE: Ref.09_04 on December 1,2007,Keenan Company,a U.S.firm,sold Merchandise to Velez Company of Company

question 51

Multiple Choice

REFERENCE: Ref.09_04
On December 1,2007,Keenan Company,a U.S.firm,sold merchandise to Velez Company of Spain for 150,000 euro.Payment is due on February 1,2008.Keenan entered into a forward exchange contract on December 1,2007,to deliver 150,000 euro on February 1,2008 for $.97.Keenan chose to use a foreign currency option to hedge this foreign currency asset designated as a cash flow hedge.Relevant exchange rates follow:
-Compute the U.S.dollars received on February 1,2008.

• A)$138,000.
• B)$136,500.
• C)$145,500.
• D)$141,000
• E)$142,500.

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Definitions:

Evolutionary Process

The natural progression through which species undergo changes over time, driven by mechanisms such as natural selection and genetic drift.

Gametophyte

The sexual phase in the life cycle of plants and algae that produces gametes (sex cells), as opposed to the sporophyte stage which produces spores.

Sporophyte

The diploid phase in the life cycle of plants and algae that produces spores.

Fern

One of a phylum of seedless vascular plants that reproduce by