Use the following information to answer questions 4344 below. lamlen, C MC On November 15, 2016, a US. oompany ssues purchase order to Caadian wel merchandise costing CS1.000,000, On the same date, the company entes a forwand co n he U.S. dollar purchase price of CSt,000.000, for delivery on April 15, 2017. The qualifies as a hedge of the firm commitment. Delivery of the merchandise aes place 017, and the forward contract is closed and payment is made to the supplier on April 15. 2017 o the following spot rates and forward rates for 4/15/17 delivery of Canadian dellars Spot rate Forward rate $0.895 0.950 date November 15, 2016 December 31, 2016 $0.905 0.965 Date March L2017 April 15, 2017 Spot rate Forward te 10.920 915 0.940 NA 43. How is the forward contract reported on the company's December 31, 2016, balance sheet S60,000 asset S60,000 liability $55,000 liability $55,000 asset S60,000 equity a. b. c. d. e. 44. After delivery, at what amount is the merchandise carried on the US. company's books? $895,000 $900,000 $905,000 $915,000 $821,000 a. b. c. d. e. A sells to B for $375 a call option for 250 shares of stock, exercisable at the stock's current market price of $75 per share and expiring in 60 days. At the end of the 60-day period, the stock price fell to $70 per share. As a result: Bis required to purchase 250 shares of stock at $75 per share. 45. a. b. A has incurred a loss of $375. B has incurred a loss of $375. B has gained $875. None of the above. c. d. e. A forward contract may be used for which of the following? 1) A fair value hedge of an asset. 2) A cash flow hedge of an asset. 3) A fair value hedge of a liability. 4) A cash flow hedge of a liability. I and 3 2 and 4 1 and 2 1, 3, and 4 1, 2, 3, and 4 46. a. b. C. d. .