On December 1, 2018, you purchased 1,000 boxes of raw materials from an Italian company for a total of 244,000 euros. Payment will be made on January 31, 2019. Relevant exchange rates are as follows: Option Premium Forward Rate for Jan. 31 Date Spot Rate for Jan. 31 (strike price = $ 0.80) December 1, 2018 $ 0.80 $ 0.82 $ 0025 December 31, 2018 0.83 0.86 0.050 January 31, 2019 0.84 Not available Not available You are a December scal year end mi and continue to retain all raw materials through the end of 2019. Required: 1. If you choose not to hedge this transaction, the combined dollar impact on net income for both 2018 and 2019 will be decrease / increase (circle one). 2. If you choose to hedge this transaction using a forward contract and use fair value hedge accounting: a. the dollar impact on net income in 2018 will be (circle one) decrease / increase b. the dollar impact on net income in 2019 will be (circle one) decrease / increase 3. If you choose to hedge this transaction using an option contract and use cash ow hedge accounting: a. the dollar impact on net income in 2018 will be (circle one) decrease / increase b. the dollar impact on net income in 2019 will be (circle one) decrease / increase 0. the Option account balance just prior to settlement of the payable is (circle one) debit / credit