12 1 Point On November 14, 2014, Scuby Company (a U.S. corporation) enters into a transaction which is denominated in the Canadian dollar. Assume the exchange rate at November 14 is $1.03, and at the December 31 year-end reporting date, the exchange rate is $1.07. On January 27, 2015, when the transaction is settled, the exchange rate is $1.05. At the date of settlement, which of the following is correct? A The historical rate = $1.05, and the spot rate at which it is settled is the same as the current rate at $1.07. B The historical rate = $1.03, and the spot rate at which it is settled is the same as the current rate at $1.06. (c) D The historical rate = $1.05, the current rate for reporting at December 31, 2014 is $1.07, and the spot rate at which it is settled is $1.03. The historical rate = $1.03, the current rate for reporting at December 31, 2014 is $1.07, and the spot rate at which it is settled is $1.05