Chapter 22 Accounting for Derivatives and Hedging

Transactions (Part 1)
Multiple Choice Theory
1. C
11.
2. A
12.
3. D
13.
4. C
14.
5. D
15.
6. C
16.
7. A
17.
8. D
18.
9. D
19.
10. C
20.

C
B
A
D
B
A
D
C
D
B

21.
22.
23.
24.
25.
26.
27.
28.
29.
30.

C
D
B
C
C
B
A
D
B
D

Exercises
1. Answers:
Case #1: The option is out of the money.
Case #2: The option is in the money. You will gain P24.50 in
exercising the option.
2. Answers:
Case #1: The option is out of the money.
Case #2: The option is in the money. You will gain P2,000 in
exercising the option.

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