acc311.9 - be more advantageous. 8) They are measued at...

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1a) Cash 400000*0.36 144000 FX Loss 4000 Cash 400000x.37 148000 b) Cash 300000 x .36 108000 FX Gain 9000 Cash 300000x.39 117000 c) 2) 30-Apr 100000/5 20000 31-May 100000/4 25000 Asset 5000 FX gain 5000 3) No gain or Loss 4a) FX Loss 3000 b) Fx Gain 4000 c) Fx Gain 3000 d) Fx Loss 8000 7) Foreign currency options have an advantage over forward contracts in that the holder of the option can choose not to exercise if the future spot rate turns out to 
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Unformatted text preview: be more advantageous. 8) They are measued at Fair Value 10) The recognition of gains and losses on the hedging instrument in the same period as the gains and losses on the underlying hedge asset 1) C 3) B 4) C 5) D 6) D 7) D 8000 + 20000 = 28000...
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This note was uploaded on 06/06/2011 for the course ECON 007 taught by Professor Bub during the Spring '11 term at CUNY Queens.

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