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[{"$nulls":16},"  Debit"]
[{"$nulls":14},"  Date","   CapIT Corporation Accounts","(Credit)","Balance"]
["Case:","CapIT Corporation Case on Applying SFAS 133 to a Euro-",{"$nulls":12}," "," "," "," "]
[null,"dollar Option Used to Cap a Forecasted Loan Transaction",{"$nulls":12},1999,null," "]
[{"$nulls":14},"June 17","Cash",{"v":-53125,"d":"(53,125)"},{"v":-53125,"d":"(53,125)"}]
["Author:","Bob Jensen at Trinity University  http://www.trinity.edu/rjensen",{"$nulls":13},"Options contracts",{"v":53125,"d":"53,125 "},{"v":53125,"d":"53,125 "}]
[{"$nulls":14}," ","Interest expense (revenue)"]
["Abstract:",{"$nulls":14},"Other comprehensive income (OCI)"," "," "]
[{"$nulls":14}," ","--To record purchase of 50 put option contracts"]
[{"$nulls":16}," "]
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[{"$nulls":14}," ","Interest expense (revenue)",{"v":-6250,"d":"(6,250)"},{"v":-6250,"d":"(6,250)"}]
[{"$nulls":15},"Other comprehensive income (OCI)",{"v":25000,"d":"25,000 "},{"v":25000,"d":"25,000 "}]
["On June 17, 1999 CapIT Corporation had a forecasted transaction to borrow $25 million in three ",{"$nulls":13}," ","--To record value adjustment of option contracts"]
["months at a variable rate.  The CFO of Capit, Todd Evert, commenced to worry about rising interest",{"$nulls":15}," "]
["rates following the cessation of NATO bombing in Kosovo.  Signs pointed to rising prices that may ",{"$nulls":13},"July 31","Cash",null,{"v":-53125,"d":"(53,125)"}]
["lead to world wide rises in borrowing costs.  ",{"$nulls":14},"Options contracts",{"v":26250,"d":"26,250 "},{"v":60625,"d":"60,625 "}]
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["Todd decided to purchase 25 September Eurodollar interest rate options in order to place a cap",{"$nulls":14},"Other comprehensive income (OCI)",{"v":-17500,"d":"(17,500)"},{"v":7500,"d":"7,500 "}]
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["LIBOR","Premium %","Premium $","Loan Rate",{"$nulls":11},"Options contracts",{"v":-5000,"d":"(5,000)"},{"v":55625,"d":"55,625 "}]
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[{"v":0.064,"d":"6.40%"},{"v":0.0085,"d":"0.85%"},{"v":53125,"d":"$53,125"},{"v":0.068,"d":"6.80%"},{"$nulls":11},"--To record loan transaction for $25 million",null," "]
[]
["LIBOR","9425 Strike","9450 Strike","9475 Strike",{"$nulls":10},"Dec. 17","Cash",{"v":-25434375,"d":"(25,434,375)"},{"v":-425000,"d":"(425,000)"}]
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[{"v":0.035,"d":"3.50%"},{"v":0.0395,"d":"3.95%"},{"v":0.0395,"d":"3.95%"},{"v":0.0395,"d":"3.95%"},{"$nulls":11},"Notes payable",{"v":25000000,"d":"25,000,000 "},{"v":0,"d":"0 "}]
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["Teaching Note With Answers to Questions"]
[]
["Case:","CapIT Corporation Case on Applying SFAS 133 to a Euro-"]
[null,"dollar Option Used to Cap a Forecasted Loan Transaction"]
[]
["Author:","Bob Jensen at Trinity University  http://www.trinity.edu/rjensen"]

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