On November 1, 2018 Happy Banana Company, a U.S-based importer of bananas, placed an order with a Brazilian supplier

Problem 3 (12 points): On November 1, 2018 Happy Banana Company, a U.S.- order with a Brazilian supplier for 1.000 cases of bananas at a price total purchase price is 50,000 Euros. Relevant exchange rates for the Euro a importer of bananas, placed arn Date are as follows: Spot Rate Forward Rate to November 30 Call Option Premium for November 30 November 1 $2.00 November 30 2.20 $2.06 1.10 (strike price $2.00 $0.07 N/A The bananas arrived on November 1 and the company made payment on N ovember 30. On ovember 1, Happy Banana purchased a 30-day call option for 50,000 Euros. It properly designated the option as a fair value hedge of a foreign currency paya entries to account for the import purchase and foreign currency option. date. repare journal ble. P Label the entries by On: November 1, 2018 On: November 30, 2018 Problem 3 (12 points): On November 1, 2018 Happy Banana Company, a U.S.- order with a Brazilian supplier for 1.000 cases of bananas at a price total purchase price is 50,000 Euros. Relevant exchange rates for the Euro a importer of bananas, placed arn Date are as follows: Spot Rate Forward Rate to November 30 Call Option Premium for November 30 November 1 $2.00 November 30 2.20 $2.06 1.10 (strike price $2.00 $0.07 N/A The bananas arrived on November 1 and the company made payment on N ovember 30. On ovember 1, Happy Banana purchased a 30-day call option for 50,000 Euros. It properly designated the option as a fair value hedge of a foreign currency paya entries to account for the import purchase and foreign currency option. date. repare journal ble. P Label the entries by On: November 1, 2018 On: November 30, 2018