7:09 PM ooo T-Mobile LTE 22%, L Project Due Thursday May 11.docx Open with Print FASB Codification Project Value: 5 points of final grade Due Date: Thursday May 11- hand in at class ALL RESPONSES MUSTTYPEWRITTEN Instructions: Read the case below and answer the 3 questions. Do not rewrite the case or rewrite the questions. Simply number your responses to correspond with the questions. Jordan Corp is a US manufacturer of auto parts with branch operations in France. On December 31, 2015 wishes to use a foreign currency option to hedge a 10,000,000 euro denominated accounts receivable that is due in two years. Jordan plans to use fair value hedge accounting. Over the subsequent 4 quarters the following are the changes in the fair value of the receivable and the foreign currency option hedge. Quarter ended March 31, 2016: Euro receivable increases by S 400,000 option hedge declines by S350,000 Quarter ended June 30, 2016 Euro receivable decreases by S500,000 option hedge increases by S 400,000 Quarter ended Sept. 30, 2016 Euro receivable decreases by S800,000 option hedge increases by S700,000 Quarter ended Dec. 31, 2016: Euro receivable increases by S 200,000 option hedge decreases by S 100,000 Answer the following questions: I. Structure the appropriate fair value hedge using an FX option. Your answer must state whether Jordan is purchasing or selling a call option or a put option, what is the maturity date of the option as well as whether it is an option to purchase euros and sell US dollars or an option to purchase US dollars and sell euros. (1 point)