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NEW QUESTION: 1
Hedgehog International has a receivable valued at 500,000 local currency units from its foreign customer
due in 90 days. The current spot rate of the local currency unit is $.60. Hedgehog purchases a put option
to sell the local currency unit in 90 days for $.61 for a premium of $.005. The exchange rate for the local
currency increases to $.63 in 90 days. What will Hedgehog do on the receivable's settlement date?
A. Hedgehog will sell the option at the settlement date and combine its proceeds along with local currency
units purchased at the spot rate to maximize its revenue.
B. Hedgehog will be indifferent as to whether it exercises the option or not.
C. Hedgehog will exercise its option and sell the proceeds of its accounts receivable collection under the
provisions of the option contract at a gain.
D. Hedgehog will not exercise the option and sell local currency units collected from its receivable at the
spot rate.
Answer: D
Explanation:
Choice "b" is correct. Hedgehog will not exercise its option and will, instead convert the local currency
units collected from the receivables to its domestic currency by selling that currency at the spot rate at the
time of collection. The exercise of the option represents a less profitable alternative than sale of the
accounts receivable proceeds at the spot rate at the time the receivables are collected. The exercise of
the option in comparison to allowing the option to expire is computed as follows:

The premium is a sunk cost and is irrelevant to the Explanation: . Note that the premium is a factor in
determining the net gain (loss) but not in deciding whether to exercise option.
Choices "a", "c", and "d" are incorrect, per computation above.

NEW QUESTION: 2
HOTSPOT
You have a DirectAccess Server that is accessible by using the name directaccess.fabrikam.com On the DirectAccess server, you install a new server certificate that has a subject name of directaccess.contoso.com, and then you configure DNS records for directaccess.contoso.com You need to change the endpoint name for DirectAccess to directaccess.contoso.com What command should you run? To answer, select the appropriate options in the answer area.

Answer:
Explanation:
Set-DaClient-ComputerName directaccess.contoso.com

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