International Accounting - 4th edition - Doupnik, Perera - Case 7-2

Portofino Company made purchases on account from three foreign suppliers on December 15, 2012, with payment made on January 15, 2013. Information related to the purchases is as follows:

Supplier	Location	Invoice price
Beija Flor Ltda	Sao Paulo, Brazil	65,000
Quetzala SA	Guatemala City, Guatemala	250,000
Mariposa SA de CV	Guadalajara, Mexico	400,000

3.) Portofino could have acquired a one-month call option on December 15, 2012 to hedge foreign exchange risk associated with each of the three import purchases. In each case, the option would have had an exercise price equal to the spot rate at December 15, 2012, and would have cost $200. Determine for which hedges, if any, Portofino would have recognzied a net gain on the foreign currency option.