On March 1, 2011, Mattie Company Received an Order to Sell

question 9

Multiple Choice

On March 1, 2011, Mattie Company received an order to sell a machine to a customer in England at a price of 200,000 British pounds. The machine was shipped and payment was received on March 1, 2012. On March 1, 2011, Mattie purchased a put option giving it the right to sell 200,000 British pounds on March 1, 2012 at a price of $380,000. Mattie properly designates the option as a fair hedge of the pound firm commitment. The option cost $2,000 and had a fair value of $2,200 on December 31, 2011. The following spot exchange rates apply:

Mattie's incremental borrowing rate is 12 percent, and the present value factor for two months at a 12 percent annual rate is .9803.
What was the net increase or decrease in cash flow from having purchased the foreign currency option to hedge this exposure to foreign exchange risk?

• A) $0
• B) $10,000 increase.
• C) $10,000 decrease.
• D) $20,000 increase.
• E) $20,000 decrease.

Familiarize with the role of electrolytes in the body and their associated conditions when imbalanced.

Understand the significance of the pituitary gland in the hormonal regulation and its relationship with other glands.

Distinguish between the types and functions of hormones produced by different endocrine glands.

Understand the concept of consumer's surplus and how it is affected by prices and income.

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Definitions:

Hierarchical

A system in which people or groups are ranked one above the other according to status or authority.

Initiative

the ability to assess and initiate things independently, often leading to new ideas or actions without being directed.

Organizational Stakeholders

Individuals or groups that have an interest or stake in the success and operations of an organization, including employees, customers, and shareholders.

Business Interests

Refer to the goals, objectives, or areas of focus that a business seeks to pursue or achieve for its growth and sustainability.