AMIS624X37 - Spot Rate Strike Price Fair Value 12/01/2005...

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12/01/2005 12/31/2005 03/30/2006 Option Value 12/01/2005 12/31/2005 03/30/2006 Spot Rate $1.73 $1.71 $1.76 Time Value $950 $800 $0 Strike Price $1.75 $1.75 $1.75 Intrinsic Valu 0 0 1,000 Fair Value $950 $800 $1,000 Total $950 $800 $1,000 Both Transactions Involve 100,000Pounds 12/01/2005Inventory 173,000 12/01/2005FX-Contract V 950 Accounts Payable 173,000 Cash 950 12/31/2005Accounts Pay 2,000 12/31/2005FX Loss 150 FX Gain 2,000 FX-Contract Value 150 03/30/2006FX Loss 5,000 03/30/2006FX-Contract V 200 Accounts Payable 5,000 FX Gain 200 Accounts Pay 176,000 Cash 1,000 Cash 176,000 FX-Contract Value 1,000
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Forward--Case to Sell Foreign Currency 10/17/2005 12/31/2005 01/15/2006 F'wd Value 10/17/2005 12/31/2005 01/15/2006 Spot Rate $0.76 $0.72 $0.75 Get $74,000 $74,000 $74,000 Forward Rate $0.74 $0.71 $0.75 Give 74,000 71,000 75,000 Effect/Discounting Net $0 $3,000 ($1,000) Discounting n/a 0n/a Both Transactions Involve 100,000Euros Value of FX $0 $3,000 ($1,000) 10/17/2005Accounts Rec 76,000 10/17/2005(memorandum only)
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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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AMIS624X37 - Spot Rate Strike Price Fair Value 12/01/2005...

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