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AMIS624X39 - Call Option Case with Inventory Spot Rate...

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Call Option Case with Inventory 11/15/2007 12/31/2007 02/13/2008 Option Value 11/15/2007 12/31/2007 02/13/2008 Spot Rate $1.34 $1.33 $1.39 Time Value $2,200 $500 $0 Strike Price $1.37 $1.37 $1.37 Intrinsic Value 0 0 2,000 Fair Value $2,200 $500 $2,000 Total $2,200 $500 $2,000 Both Transactions Involve 100,000 Euros 11/15/2007Inventory 134,000 11/15/2007 FX-Contract V 2,200 Accounts Payable 134,000 Cash 2,200 12/31/2007Accounts Pay 1,000 12/31/2007 FX Loss 1,700 FX Gain 1,000 FX-Contract Value 1,700 02/13/2008FX Loss 6,000 02/13/2008 FX-Contract V 1,500 Accounts Payable 6,000 FX Gain 1,500 Accounts Pay 139,000 Cash 2,000 Cash 139,000 FX-Contract Value 2,000
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Forward--Case to Sell Foreign Currency 12/01/2007 12/31/2008 01/29/2008 F'wd Value 12/01/2007 12/31/2008 01/29/2008 Spot Rate $1.95 $1.97 $1.90 Get $192,000 $192,000 $192,000 Forward Rate $1.92 $1.95 $1.90 Give 192,000 195,000 190,000 Effect/Discounting Net $0 ($3,000) $2,000 Discounting n/a 0 n/a Both Transactions Involve 100,000 Pounds Value of FX $0 ($3,000) $2,000 12/01/2007Accounts Rec 195,000 12/01/2007 (memorandum only) Sales 195,000 12/31/2008Accounts Rec 2,000 12/31/2008 FX Loss 3,000 FX Gain 2,000 FX-Contract Value 3,000 01/29/2008FX Loss 7,000 01/29/2008 FX-Contract V 5,000 Accounts Receivable 7,000 FX Gain 5,000 Cash 190,000 Cash 2,000 Accounts Receivable 190,000 FX-Contract Value 2,000
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Current Temporal SwFr Code Rate U.S. $
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