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On October 1 , 2 0 2 4 , Blue Truck Company SELLS inventory to a British supplier at a price of 1 0 0
On October Blue Truck Company SELLS inventory to a British supplier at a price of British pounds. On October Blue Truck pays $ for a threemonth put option on pounds with a strike price of $ per pound. The option is considered to be a FAIR VALUE hedge of a foreign currency transaction. On December the option has a fair value of $ The following spot exchange rates apply: Date Spot Rate October $ December $ February $ Use the journal enteries given and find the values assuming Blue Truck uses a calendar year end. Accounts Recievable Sales Foreign Exchange GainLoss Accounts Recievable Forward Contract GainLoss Foreign Exchange GainLoss Accounts Recievable Forward Contract GainLoss Foreign Currency Accounts Recievable Cash Foreign Currency Forward Contract
On October Blue Truck Company SELLS inventory to a British supplier at a price of British pounds. On October Blue Truck pays $ for a threemonth put option on pounds with a strike price of $ per pound. The option is considered to be a FAIR VALUE hedge of a foreign currency transaction. On December the option has a fair value of $ The following spot exchange rates apply:
Date Spot Rate
October $
December $
February $
Use the journal enteries given and find the values assuming Blue Truck uses a calendar year end. Accounts Recievable
Sales
Foreign Exchange GainLoss
Accounts Recievable
Forward Contract
GainLoss
Foreign Exchange GainLoss
Accounts Recievable
Forward Contract
GainLoss
Foreign Currency
Accounts Recievable
Cash
Foreign Currency
Forward Contract
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