AMIS624X3A - Spot Rate Strike Price Fair Value 12/01/2007...

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12/01/2007 12/31/2007 03/30/2008 Option Value 12/01/2007 12/31/2007 03/30/2008 Spot Rate $1.97 $1.93 $2.07 Time Value $1,040 $700 $0 Strike Price $2.00 $2.00 $2.00 Intrinsic Valu 0 0 7,000 Fair Value $1,040 $700 $7,000 Total $1,040 $700 $7,000 Both Transactions Involve 100,000Pounds 12/01/2007Inventory 197,000 12/01/2007FX-Contract V 1,040 Accounts Payable 197,000 Cash 1,040 12/31/2007Accounts Pay 4,000 12/31/2007FX Loss 340 FX Gain 4,000 FX-Contract Value 340 03/30/2008FX Loss 14,000 03/30/2008FX-Contract V 6,300 Accounts Payable 14,000 FX Gain 6,300 Accounts Pay 207,000 Cash 7,000 Cash 207,000 FX-Contract Value 7,000
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Forward--Case to Sell Foreign Currency 10/17/2007 12/31/2007 01/15/2008 F'wd Value 10/17/2007 12/31/2007 01/15/2008 Spot Rate $1.34 $1.31 $1.41 Get $137,000 $137,000 $137,000 Forward Rate $1.37 $1.33 $1.41 Give 137,000 133,000 141,000 Effect/Discounting Net $0 $4,000 ($4,000) Discounting n/a 0n/a Both Transactions Involve 100,000Euros Value of FX $0 $4,000 ($4,000) 10/17/2007Accounts Rec
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This note was uploaded on 08/06/2011 for the course AMIS 624 taught by Professor Wallin during the Summer '11 term at Ohio State.

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AMIS624X3A - Spot Rate Strike Price Fair Value 12/01/2007...

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