On December 1, 2011, Keenan Company, a U

question 74

Multiple Choice

On December 1, 2011, Keenan Company, a U.S. firm, sold merchandise to Velez Company of Canada for 150,000 Canadian dollars (CAD) . Collection of the receivable is due on February 1, 2012. Keenan purchased a foreign currency put option with a strike price of $.97 (U.S.) on December 1, 2011. This foreign currency option is designated as a cash flow hedge. Relevant exchange rates follow:

Compute the fair value of the foreign currency option at February 1, 2012.

• A) $6,000.
• B) $4,500.
• C) $3,000.
• D) $7,500.
• E) $1,500.

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Definitions:

Abnormal Respiratory Values

Measurements that fall outside the normal range for breathing variables, indicating potential respiratory dysfunction.

Thyroid Cartilage

The largest cartilage in the larynx, commonly known as the Adam's apple, located at the front of the neck.

Respiratory Center

A group of neurons in the brainstem that regulate the rate and depth of breathing.

Depression

Movement of a structure in an inferior direction.