Find an Accountant 1

11/1/2013 12/31/2013 1/31/2014 Spot Rate $1.20 $ $1.25 $1.30 Forward Rate $1.23 $1.26 $1.30 HedgeCo is interested in purchasing 1,000 of Product Z from OverSeas Inc. HedgeCo is very concerned about two issues: 1) that the price of Product Z will change and 2) the exchange rate will make an unfavorable change before the purchase takes place. Select a hedge and explain your selection. Use the exchange rates above to make your journal entry. Select appropriate account names for your journal entry. (you might be able to use forward contract with cash flow not sure!)