AMIS624X3I - 12/1/20x1 12/31/20x2 3/30/20x2 Spot Rate $1.48...

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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 $1.48 $1.46 $1.55 Time Value $700 $500 $0 Strike Price $1.50 $1.50 $1.50 Intrinsic Valu 0 0 5,000 Fair Value $700 $500 $5,000 Total $700 $500 $5,000 Both Transactions Involve 100,000Euros 12/1/20x1 Inventory 148,000 12/1/20x1 FX-Contract V 700 Accounts Payable 148,000 Cash 700 12/31/20x2 Accounts Pay 2,000 12/31/20x2 FX Loss 200 FX Gain 2,000 FX-Contract Value 200 3/30/20x2 FX Loss 9,000 3/30/20x2 FX-Contract V 4,500 Accounts Payable 9,000 FX Gain 4,500 Accounts Pay 155,000 Cash 5,000 Cash 155,000 FX-Contract Value 5,000
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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 $1.67 $1.69 $1.55 Get $170,000 $172,000 $155,000 Forward Rate $1.70 $1.72 $1.55 Give 170,000 170,000 170,000 Effect/Discounting Net $0 $2,000 ($15,000) Discounting n/a 0n/a Both Transactions Involve 100,000Pounds Value of FX $0 $2,000 ($15,000) 10/17/20x1 Inventory 167,000
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AMIS624X3I - 12/1/20x1 12/31/20x2 3/30/20x2 Spot Rate $1.48...

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