Examlex

Solved

On December 1, 2011, Keenan Company, a U

question 67

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:
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.


Definitions:

Power

The ability or capacity to direct or influence the behavior of others or the course of events.

Requests for Proposals

Formal invitations issued by organizations seeking bids or proposals for services, projects, or products from suppliers or contractors.

Grant Opportunities

Opportunities for obtaining financial support, typically for specific projects or programs, provided by governments, foundations, or other entities.

Government Agencies

Public sector bodies, either federal, state, or local, that administer and enforce laws, policies, and regulations.

Related Questions