Question: How does a foreign currency option differ from a foreign
How does a foreign currency option differ from a foreign currency forward contract?
Answer to relevant QuestionsUnder what conditions can companies use hedge accounting to account for a foreign currency option used to hedge a forecasted foreign currency transaction?Assuming that MNC entered into a forward contract to sell 10 million South Korean won on December 1, 2011, as a fair value hedge of a foreign currency receivable, what is the net impact on its net income in 2011 resulting ...New Colony Corporation (a U.S. company) made a sale to a foreign customer on September 15, 2011, for 100,000 foreign currency units (FCU). It received payment on October 15, 2011. The following exchange rates for 1 FCU ...On June 1, Alexander Corporation sold goods to a foreign customer at a price of 1,000,000 pesos. It will receive payment in three months on September 1. On June 1, Alexander acquired an option to sell 1,000,000 pesos in ...Vino Veritas Company, a U.S.-based importer of wines and spirits, placed an order with a French supplier for 1,000 cases of wine at a price of 200 euros per case. The total purchase price is 200,000 euros. Relevant exchange ...
Post your question