On december 1, 2018, keenan company, a u. s. firm, sold merchandise to velez company of canada for 150,000 canadian dollars (cad). collection of the receivable is due on february 1, 2019. keenan purchased a foreign currency put option with a strike price of $.97 (u. s.) on december 1, 2018. this foreign currency option is designated as a cash flow hedge. relevant exchange rates follow:

date

spot rate

option

premium

december 1, 2018

$

0.97

$

0.05

december 31, 2018

$

0.95

$

0.04

february 1, 2019

$

0.94

$

0.03

compute the fair value of the foreign currency option at february 1, 2019. 27) a) $7,500. b) $6,000. c) $3,000. d) $1,500. e) $4,500.

compute the u. s. dollars received on february 1, 2019. 28) a) $141,000

b) $142,500. c) $136,500. d) $138,000. e) $145,500.