AMIS624X3D - 12/1/20x1 12/31/20x2 3/30/20x2 Spot Rate $1.46...

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12/1/20x1 12/31/20x2 3/30/20x2 Option Value12/1/20x1 12/31/20x2 3/30/20x2 Spot Rate $1.46 $1.52 $1.48 Time Value $900 $700 $0 Strike Price $1.50 $1.50 $1.50 Intrinsic Valu 0 2,000 0 Fair Value $900 $2,700 $0 Total $900 $2,700 $0 Both Transactions Involve 100,000Euros 12/1/20x1 Inventory 146,000 12/1/20x1 FX-Contract V 900 Accounts Payable 146,000 Cash 900 12/31/20x2 FX Loss 6,000 12/31/20x2 FX-Contract V 1,800 Accounts Payable 6,000 FX Gain 1,800 3/30/20x2 Accounts Pay 4,000 3/30/20x2 FX Loss 2,700 FX Gain 4,000 FX-Contract Value 2,700 Accounts Pay 148,000 Cash 0 Cash 148,000 FX-Contract Value 0
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Forward--Case to Buy Foreign Currency 10/17/20x1 12/31/20x1 1/15/20x2 F'wd Value 10/17/20x1 12/31/20x1 1/15/20x2 Spot Rate $1.97 $1.95 $2.04 Get $201,000 $198,000 $204,000 Forward Rate $2.01 $1.98 $2.04 Give 201,000 201,000 201,000 Effect/Discounting Net $0 ($3,000) $3,000 Discounting n/a 0n/a Both Transactions Involve 100,000Pounds Value of FX $0 ($3,000) $3,000 10/17/20x1 Inventory 197,000 10/17/20x1
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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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AMIS624X3D - 12/1/20x1 12/31/20x2 3/30/20x2 Spot Rate $1.46...

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