The Diez Mil Company (DMC), a U.S. company, made credit sales to


The Diez Mil Company (DMC), a U.S. company, made credit sales to four customers in Asia on September 6, 2021, and received payment on October 6, 2021. Information related to these sales is as follows:

Customer Location Invoice Price
Boroda Ltd. Vadodara 3,655,000 Indian rupees (IN)
Thai Group India Nonthaburi, Thalland 1,625,000 Thai baht (THB)
Thai Group, Nagoya, Japan 5,494,000 Japanese yen (JPY)
Mainan Svarikat Skudal, Malaysia 207.400 Malaysian ringgits (MYR

DMC’s fiscal year ends September 30.
1. Use historical exchange rate information available on the Internet at, Historical Lookup, to find exchange rates between the U.S. dollar and each foreign currency for September 6, September 30, and October 6, 2021.
2. Determine the foreign exchange gains and losses that DMIC would have recognized in net income in the fiscal years ended September 30, 2021, and September 30, 2022, and the overall foreign exchange gain or loss for each transaction. Determine for which transaction, if any, it would have been important for DMC to hedge its foreign exchange risk.
3. DMC could have acquired a one-mooth put option on September 6, 2021, to bed
exchange risk associated with each of the four export sales. In each case, the put option would have cost $500 with the strike price equal to the September 6, 2021, spot rate. Determine for which hedges, if any, DMC would have realized a net cash flow benefit from the foreign currency option.

It’s that simple.Pay only when you are satisfied.

Get Personalized Homework Help

Improve Your Grades Today
How It Works

1-Send us your Assignment requirements, attach and deadline for submission.

2-You will get a confirmation from us with a price quote.Pay us and be relax.

3-Your Completed task will be e mailed to you before agreed time.

Submit Your Assignment/Essay/Discussion/Term Paper/Final Exam or CaseStudy Detail

    Available 24/7!

    Send your academic problems,

    Get instant Help only at Writerscampus!

    How useful was this post?

    Click on a star to rate it!

    Leave a Reply

    Your email address will not be published. Required fields are marked *