Atherton Inc

question 14

Multiple Choice

Atherton Inc., a U.S. company, expects to order goods from a foreign supplier at a price of 100,000 lira, with delivery and payment to be made on April 17. On January 17, Atherton purchased a three-month call option on 100,000 lira and designated this option as a cash flow hedge of a forecasted foreign currency transaction. The following exchange rates apply: What amount will Atherton include as an option expense in net income for the period January 17 to April 17?

• A) $4,000
• B) $4,260
• C) $4,340
• D) $5,000
• E) $5,260

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Definitions:

PLC Electronic Components

The various electronic parts and modules that constitute a Programmable Logic Controller, enabling its functionality.

HMI Screens

Human-Machine Interface screens are display panels on devices that allow users to interact with a system or machine to control and monitor processes.

Software Package

A collection of related programs and files packaged together, which can be installed and used on a computer's operating system.

PLC Operator Interface Device

Hardware or software that allows human operators to interact, monitor, and control the PLC and the processes it governs.