1. On December 1, 2008, Denizen Corporation entered into a 120-day forward contract to purchase 20,000 Canadian dollars (C$). Denizen%u2019s fiscal year ends on December 31. The forward contract was to hedge a firm commitment agreement made on December 1, 2008, to purchase electronic goods on January 30, 2009, with payment due on March 31, 2009. The derivative is designated as a fair value hedge. The direct exchange rates follow:

Date

Spot Rate

Forward Rate for March 31, 2009

December 1, 2008

0.940

0.944

December 31, 2008

0.945

0.947

January 30, 2009

0.943

0.943

March 31, 2009

0.941

 

 

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