Solution-At what amount must the option be presented as of

At what amount must the option be presented as of december

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Question - On November 1, 2013, Word Inc. paid P45,000 to acquire call foreign exchange option for HK$90,000. The option is acquired to hedge the 2013 anticipated purchase of merchandise for HK$90,000. The option expires on March 31, 2014.

	11/1/2013	12/31/2013	3/31/2014
Spot Rate	P3.46	P3.40	P3.39
Fair Value of Option	4,500	5,050	7,200
Strike Price	3.47	3.47	3.47

Required - At what amount must the option be presented as of December 31, 2013?

Reference no: EM133175037

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At what amount must the option be presented as of december : On November 1, 2013, Word Inc. paid P45,000 to acquire call foreign exchange option for HK$90,000. At what amount must the option be presented as of December

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At what amount must the option be presented as of december

Reference no: EM133175037

Reference no: EM133175037

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