AMIS624X32 - Put Option Case with Sales 12/01/2004...

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Unformatted text preview: Put Option Case with Sales 12/01/2004 12/31/2004 03/01/2005 Option Value 12/01/2004 12/31/2004 03/01/2005 Spot Rate $1.10 $1.06 $1.05 Time Value $1,800 $1,100 $0 Strike Price $1.07 $1.07 $1.07 Intrinsic Valu 1,000 2,000 Fair Value $1,800 $2,100 $2,000 Total $1,800 $2,100 $2,000 Both Transactions Involve 100,000 Euros 12/01/2004Accounts Rec 110,000 12/01/2004 FX-Contract V 1,800 Sales 110,000 Cash 1,800 12/31/2004FX Loss 4,000 12/31/2004 FX-Contract V 300 Accounts Receivable 4,000 FX Gain 300 03/01/2005FX Loss 1,000 03/01/2005 FX Loss 100 Accounts Receivable 1,000 FX-Contract Value 100 Cash 105,000 Cash 2,000 Accounts Receivable 105,000 FX-Contract Value 2,000 Forward--Case to Sell Foreign Currency 11/14/2004 12/31/2004 03/14/2005 F'wd Value 11/14/2004 12/31/2004 03/14/2005 Spot Rate $1.02 $1.04 $0.95 Get $97,000 $97,000 $97,000 Forward Rate $0.97 $1.01 $0.95 Give 97,000 101,000 95,000 Effect/Discounting Net $0 ($4,000) $2,000 Discounting n/a 0n/a Both Transactions Involve 100,000 Euros...
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AMIS624X32 - Put Option Case with Sales 12/01/2004...

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