Business, 06.05.2021 17:10, amanduhhhh

On December 1, 2021, ABC Company, (a U. S.-based firm), sold merchandise to XYZ Company of Canada for 150,000 Canadian dollars (CAD). Collection of the receivable is due on February 1, 2022. ABC Co. purchased a foreign currency put option with a strike price of $0.97 (U. S.) on December 1, 2021. This foreign currency option is designated as a cash flow hedge. Relevant exchange rates follow: Date Spot Rate Option Premium
December 1, 2021 $0.97 $0.05
December 31, 2021 $0.95 $0.04
February 1, 2022 $0.94 $0.03

Required:
Compute the fair value of the foreign currency option at December 1, 2021.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 01:30, AbyssAndre

Can you post a video on of the question that you need on

Answers: 2

continue

Business, 22.06.2019 11:10, chloeholt123

Which of the following is an example of a production quota? a. the government sets an upper limit on the quantity that each dairy farmer can produce. b. the government sets a price floor in the market for dairy products. c. the government sets a lower limit on the quantity that each dairy farmer can produce. d. the government guarantees to buy a specified quantity of dairy products from farmers.

Answers: 2

continue

Business, 22.06.2019 11:30, jennybee12331

Money from an allowance or job is known as .

Answers: 3

continue

Business, 22.06.2019 14:30, SophieCasey

The state in which the manufacturing company you work for is located regulates the presence of a particular substance in the environment to concentrations ≤ x. recently-released, reliable research endorsed by the responsible federal agency conclusively demonstrates that the substance poses no risks at concentrations up to 5x. your company has asked you to consider designing a new process with a waste discharge stream containing up to 2x of the substance. based on the stated conditions, describe this possible.

Answers: 2

continue

Do you know the correct answer?

On December 1, 2021, ABC Company, (a U. S.-based firm), sold merchandise to XYZ Company of Canada fo...