The Following Information Pertains to Questions

question 56

Multiple Choice

The following information pertains to questions
On July 1,2014,when the spot rate was US$1=CDN$1.1445,North Inc,based in the Alberta,ordered merchandise from an American supplier for US$600,000.Delivery was scheduled for the month of September,with payment to be made in full by December31,2014.
Once the order was placed,North entered into a forward contract with its bank to purchase US$600,000 in December at the forward rate of $1.1625CDN.The merchandise was received on October 1,2014,when the spot rate was US$1=$1.1575CDN.On October 31,the company's year-end,the spot rate was $1.1690.North purchased the U.S.dollars to pay its supplier on November 15,2014 when the spot rate was $1.1725CDN.
-What amount (in Canadian dollars) did North pay to its American supplier for the purchase of the inventory?

• A)$686,700
• B)$697,500
• C)$694,500
• D)$703,500

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Definitions:

Localized Amnesia

An inability to recall any of the events that occurred over a limited period of time.

Continuous Amnesia

An inability to recall newly occurring events as well as certain past events.

Switching

The act of changing from one state, condition, or activity to another, which can refer to various contexts including psychological states or activities.

Dissociative Disorder

A group of mental disorders characterized by a disconnection between thoughts, identity, consciousness, and memory.