The Diez Mil Company (DMC), a U.S. company, made credit sales to four customers in Asia on September 6, 2021, and received payment on October 6, 2021. Information related to these sales is as follows:

Customer Location Invoice Price Boroda Ltd. Vadodara 3,655,000 Indian rupees (IN) Thai Group India Nonthaburi, Thalland 1,625,000 Thai baht (THB) Thai Group, Nagoya, Japan 5,494,000 Japanese yen (JPY) Mainan Svarikat Skudal, Malaysia 207.400 Malaysian ringgits (MYR DMC's fiscal year ends September 30. Required 1. Use historical exchange rate information available on the Internet at www.x-rates.com, Historical Lookup, to find exchange rates between the U.S. dollar and each foreign currency for September 6, September 30, and October 6, 2021. 2. Determine the foreign exchange gains and losses that DMIC would have recognized in net income in the fiscal years ended September 30, 2021, and September 30, 2022, and the overall foreign exchange gain or loss for each transaction. Determine for which transaction, if any, it would have been important for DMC to hedge its foreign exchange risk. 3. DMC could have acquired a one-mooth put option on September 6, 2021, to bed foreign exchange risk associated with each of the four export sales. In each case, the put option would have cost $500 with the strike price equal to the September 6, 2021, spot rate. Determine for which hedges, if any, DMC would have realized a net cash flow benefit from the foreign currency option.

10/6/2021						9/6/2021				9/30/2021
Euro	0.932302	1.072614				US Dollar	1.00 USD	inv. 1.00 USD		US Dollar	1.00 USD	inv. 1.00 USD
British Pound	0.811543	1.232221				Euro	0.932302	1.072614		Euro	0.932302	1.072614
Indian Rupee	82.741719	0.012086				British Pound	0.811543	1.232221		British Pound	0.811543	1.232221
Australian Dollar	1.537103	0.650575				Indian Rupee	82.741719	0.012086		Indian Rupee	82.741719	0.012086
Canadian Dollar	1.363828	0.73323				Australian Dollar	1.537103	0.650575		Australian Dollar	1.537103	0.650575
Singapore Dollar	1.354185	0.738452				Canadian Dollar	1.363828	0.73323		Canadian Dollar	1.363828	0.73323
Swiss Franc	0.905699	1.104119				Singapore Dollar	1.354185	0.738452		Singapore Dollar	1.354185	0.738452
Malaysian Ringgit	4.622891	0.216315				Swiss Franc	0.905699	1.104119		Swiss Franc	0.905699	1.104119
Japanese Yen	140.067236	0.007139				Malaysian Ringgit	4.622891	0.216315		Malaysian Ringgit	4.622891	0.216315
Chinese Yuan Renminbi	7.078179	0.141279				Japanese Yen	140.067236	0.007139		Japanese Yen	140.067236	0.007139
						Chinese Yuan Renminbi	7.078179	0.141279		Chinese Yuan Renminbi	7.078179	0.141279