The Pier Ten Company, a U.S. company, made credit sales to four customers in Asia on September

Question:

The Pier Ten Company, a U.S. company, made credit sales to four customers in Asia on September 15, 2015, and received payment on October 15, 2015. Information related to these sales is as follows:

The Pier Ten Company'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 15, September 30, and October 15, 2015.
2. Determine the foreign exchange gains and losses that Pier Ten would have recognized in net income in the fiscal years ended September 30, 2015, and September 30, 2016, and the overall foreign exchange gain or loss for each transaction. Determine for which transaction, if any, it would have been important for Pier Ten to hedge its foreign exchange risk.
3. Pier Ten could have acquired a one-month put option on September 15, 2015, to hedge the foreign exchange risk associated with each of the four export sales. In each case, the put option would have cost $100 with the strike price equal to the September 15, 2015, spot rate. Determine for which hedges, if any, Pier Ten would have recognized a net gain on the foreign currency option.

Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity. Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...