【单选题】To account for a forward contract cash flow hedge of a foreign currency denominated asset or liability at initiation date requires which of the following?
A.
1. Recognize the transaction (sale or purchase) and foreign currency denominated asset or libility 2. Recognize option as an asset (purchase price is fair value)
B.
1. No entry related to the firm commitment (zero value) 2. No entry related to forward contract (zero fair value)
C.
1. Recognize the transaction (sale or purchase) and foreign currency denominated asset or liability 2. No entry related to forward contract (zero fair value)
D.
1. Recognize the transaction (sale or purchase) 2. Recognize the option as a liability
【单选题】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 purcha...
A.
te Spot rate Option premium
B.
cember 1,2018 $0.97 $0.05
C.
cember 31,2018 $0.95 $0.04
D.
bruary1,2019 $0.94 $0.03
E.
mpute the fair value of the foreign currency option at December 1, 2018.
【单选题】Except for ( ), the following foreign exchange transactions can be used by companies whose foreign exchange receipts and payments are in the future to hedge against exchange rate risk.