On December 1, 2011, Keenan Company, a U

Multiple Choice

On December 1, 2011, Keenan Company, a U.S. firm, sold merchandise to Velez Company of Canada for 150,000 Canadian dollars (CAD) . Collection of the receivable is due on February 1, 2012. Keenan purchased a foreign currency put option with a strike price of $.97 (U.S.) on December 1, 2011. This foreign currency option is designated as a cash flow hedge. Relevant exchange rates follow:

Compute the U.S. dollars received on February 1, 2012.

A) $138,000.
B) $136,500.
C) $145,500.
D) $141,000
E) $142,500.