Crown co. is expecting to receive 100,000 british pounds in one year. crown expects the spot rate of british pound to be $1.49 in a year, so it decides to avoid exchange rate risk by hedging its receivables. the spot rate of the pound is quoted at $1.51. the strike price of put and call options are $1.54 and $1.53 respectively. the premium on both options is $.03. the one-year forward rate exhibits a 2.65% premium. assume there are no transaction costs. what is the best possible hedging strategy and how many u. s. dollars crown co. will receive under this strategy?

The blumer company entered into the following transactions during 2012: 1. the company was started with $22,000 of common stock issued to investors for cash. 2. on july 1, the company purchased land that cost $15,500 cash. 3. there were $700 of supplies purchased on account. 4. sales on account amounted to $9,500. 5. cash collections of receivables were $5,500. 6. on october 1, 2012, the company paid $3,600 in advance for a 12-month insurance policy that became effective on october 1. 7. supplies on hand as of december 31, 2010 amounted to $225. the amount of cash flow from investing activities would be: