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On December 1, 2011, Keenan Company, a U

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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:
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 U.S. dollars received on February 1, 2012.  A)  $138,000. B)  $136,500. C)  $145,500. D)  $141,000 E)  $142,500.
Compute the U.S. dollars received on February 1, 2012.


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