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On November 1 , 2 0 8 , Perry Co . purchased 1 0 0 , 0 0 0 FCU of inventory. Payment is due
On November Perry Co purchased FCU of inventory. Payment is due January x In order to hedge the foreign purchase, Perry Co also entered in to a forward contract on November to purchase FCU on January x Perry Co has a December st yearend.
The spot rates during this period were as follows:
Date
November
December
December
January
Spot rate
$$FCU
$FCU
$FCU
$$FCU
Forward rates for settlement on January during this period were as follows:
Date
November x
December x
December
Forward rate
$FCU
$$FCU
$$FCU
On December x at what value will the forward contract asset be recorded on Perry Cos balance sheet?
Round to the nearest dollar, no $ signs, negative signs, commas or periods.
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