Problem 4. On November 1, 2017, US Frigatebird Company sold an airplane worth $1 million Australian dollars to Australian company Heron Inc., to be paid on February 1, 2018 in Sydney. In order to hedge foreign exchange, Frigatebird entered into a 90 day forward contract on the same day for the amount of the sale at .73 US per Australian dollar. The relevant exchange rates are of US dollars per Australian dollar: Forward Rate Date Spot Rate (Delivery on 2/1/2018) Nov. 1, 2017 $0.71 $0.73 Dec. 31, 2017 0.75 0.76 Feb. 1, 2018 0.74 March 31, 2018 0.67 Instructions 1. What journal entry did Frigatebird record on November 1, 2017? 2. What journal entry did Frigatebird record on December 31, 2017? 3. What journal entry did Frigatebird record on February 1, 2018? 4. What journal entry did Frigatebird record on November 1, 2017, December 31, 2017, February 1, 2018, and March 31, 2018, assuming that Frigatebird purchased a put option instead for $20,000 to sell $1 million Australian dollars at .73 US per Australian dollar with an expiration date of March 31, 2018? The option is worth $3,000 on December 31, 2017