Business, 09.04.2020 22:58 klairecarregal6016
On December 1, 2001 Pimlico made sales to a customer in India and recorded Accounts Receivable of 10,000,000 rupees. The customer has until March 1, 2002 to pay. On December 1, 2001, Pimlico paid $500 for a put option to sell rupees at a strike price of $2.30 per 100 rupees on March 1, 2002, which was the spot rate on December 1, 2001. On December 31, 2001, the spot rate was $2.80 per 100 rupees and the option premium was $0.004 per 100 rupees.
What is the fair value of the option on December 1, 20x1?
a. $0
b. $500
c. $400
d. $10,000
What is the fair value of the option on December 31, 20x1?
a. $0
b. $500
c. $400
d. $10,000
What is the foreign currency exchange gain or loss on December 31, 20x1?
a. $50,000 loss
b. $50,000 gain
c. $10,000 gain
d. $10,000 loss
If the spot rate on March 1, 20x2 was $2.45 per 100 rupees, what is the foreign currency exchange gain or loss that should be recorded that day?
a. $15,000 gain
b. $15,000 loss
c. $35,000 gain
d. $35,000 loss
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 19:30, dfrtgyuhijfghj4794
About 20 years ago, sturdy light, inc., produced a sturdy, lightweight backpack in a market that was rapidly growing. sturdy light became a leader in this market. eventually, the backpack market reached the maturity stage and slowed down. however, by this time, sturdy light had developed a strong brand name and continued to steadily lead the market. which of the following describes this scenario? a. sturdy light was a star that developed into a cash cow. b. sturdy light was a question mark that developed into a star. c. sturdy light was a dog that developed into a question mark. d. sturdy light was a cash cow that developed into a star.
Answers: 2
Business, 22.06.2019 22:40, kharmaculpepper
Rolston music company is considering the sale of a new sound board used in recording studios. the new board would sell for $27,200, and the company expects to sell 1,570 per year. the company currently sells 2,070 units of its existing model per year. if the new model is introduced, sales of the existing model will fall to 1,890 units per year. the old board retails for $23,100. variable costs are 57 percent of sales, depreciation on the equipment to produce the new board will be $1,520,000 per year, and fixed costs are $1,420,000 per year. if the tax rate is 35 percent, what is the annual ocf for the project?
Answers: 1
Business, 22.06.2019 22:50, kelseeygee
What is the difference between the contractual interest rate and the market interest rate?
Answers: 1
You know the right answer?
On December 1, 2001 Pimlico made sales to a customer in India and recorded Accounts Receivable of 10...
Questions in other subjects:
Mathematics, 05.10.2019 19:50
Chemistry, 05.10.2019 19:50
Mathematics, 05.10.2019 19:50
Arts, 05.10.2019 19:50
Biology, 05.10.2019 19:50
Biology, 05.10.2019 19:50
History, 05.10.2019 19:50
