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On June 1, Alexander Corporation sold goods to a foreign customer at a price of 1,000,000 pesos. It will receive payment in three months on September…
On June 1, Alexander Corporation sold goods to a foreign customer at a price of 1,000,000 pesos. It will receive payment in three months on September 1. On June 1, Alexander acquired an option to sell 1,000,000 pesos in three months at strike price of $0.045. Relevant exchange rates and option premiums for the peso are as follows:
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