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11 Atherton, Inc., a U.S. company, expects to order goods...

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Accounting

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Atherton, Inc., a U.S. company, expects to order goods from a foreign supplier at a price of 100,000 lira, with delivery and payment to be made on April 17 On January 17 Atherton purchased a three-month call option on 100,000 lira and designated this option as a cash flow hedge of a forecasted foreign currency transaction. The following exchange rates apply: Option Strike Price Option cost January 17 Spot Rate April 17 Spot Rate $ 4.34 $5,000 $ 4.34 $ 4.26 What amount will Atherton record the Foreign Currency Option on January 17? Multiple Choice $5,260 $5,000 $4,340 What amount will Atherton record the Foreign Currency Option on January 17? Multiple Choice $5,260 $5,000 O $4,340 $4,260 $4,000

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