The Following Information Pertains to Questions

question 6

Multiple Choice

The following information pertains to questions
ABC Inc.sells thermal compressors throughout the world.On January 1,2013,the company sold 500 compressors to an American supplier at a total cost $60,000 U.S.when the spot rate was US$1=$1.1750CDN.Payment on the invoice was due by May 1,2013.ABC entered into a 4-month hedge with its bank at a forward rate of $1.20CDN on January 2,2013.ABC's year-end is on January 31,and on that date in 2013,the spot rate in effect was $1.1825CDN.
ABC received payment from its supplier on May 1,2013 when the spot rate was US$1=$1.1975 CDN.
-What amount (in Canadian dollars) should ABC expect to receive from its bank on May 1,2013?

• A)$72,000
• B)$70,500
• C)$70,950
• D)$71,850

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Definitions:

Right Hemisphere

Denotes the right half of the human brain, associated with spatial abilities, visual imagery, and the processing of music and art.

Stimulants

Substances that increase activity in the brain and nervous system, enhancing alertness and energy.

Depressants

Substances that reduce the activity of the central nervous system, leading to effects such as relaxation, reduced anxiety, and sleepiness.

Narcotics

Narcotics are drugs that relieve pain and can induce sleep, but also have potential for dependency and abuse.