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On November 1 , 2 0 2 3 , a company has merchandise reported at a cost of $ 1 0 , 0 0 0
On November a company has merchandise reported at a cost of $ and with a fair value of $ It invests $ in threemonth put options with a strike price of $ At the companys December yearend, the merchandise has a fair value of $ and the options are worth $ On January the merchandise has a fair value of $ and the company sells the options for $ The company uses hedge accounting and designates the intrinsic value of the options as the hedge. What is the net effect of the events of on OCI if the company systematically amortizes the option time value to income on a straightline basis?
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