19 On December 1, 2021, Keenan Company, a U.S. firm,...
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On December 1, 2021, Keenan Company, a U.S. firm, sold merchandise to Velez Company of Canada for 150,000 Canadian dollar (CAD). Collection of the receivable is due on February 1, 2022. Keenan purchased a foreign currency put option with a strike price of $0.97 (U.S.) on December 1, 2021. This foreign currency option is designated as a cash flow hedge. Relevant exchange rates follow: Spot Rate Option Premium $ 0.97 $ 0.05 Date December 1, 2021 December 31, 2021 February 1 2022 $ 0.95 $ 0.04 $ 0.94 $ 0.03 Compute the U.S. dollars received on February 1, 2022 Multiple Choice $136.500 $142.500 $141.000 Compute the US dollars received on February 1 2022 Multiple Choice $136,500 5142,500 $141.000 $145,500 $138.000
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