Happ, Inc agreed to purchase merchandise from a British vendor on November 30, 2018 . The goods will arrive on January 31, 2019 and payment of 100,000 British pounds is due at that time
On November 30, 2018, Happ signed an agreement with a foreign exchange broker to buy 100,000 British pounds on January 31, 2019 . Exchange rates to purchase 1 British pound are as follows: Nov. 30, 2018 Dec. 31, 2018 Jan. 31, 2019 Spot $1.65 $1.62 $1.59 30 day $1.64 $1.59 $1.60 60 day $1.63 $1.56 $1.58 Because of this commitment hedge, Happ, Inc will record the merchandise at what value when it arrives in January? a. $165,000
b. $164,000
c. $163,000
d. $159,000
c
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Fill in the blank with correct word.
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Indicate whether the statement is true or false