On October 1, 2018, Short Company ordered some equipment from a supplier for 200,000 euros. Delivery and payment is to occur on November 30, 2019. The spot rates on October 1, 2018 and November 30,...

On October 1, 2018, Short Company ordered some equipment from a supplier for 200,000 euros. Delivery and payment is to occur on November 30, 2019. The spot rates on October 1, 2018 and November 30, 2019 are $1.50 and $1.30.

1. If the company does not hedge the commitment, at what amount is the equipment recorded on the books on November 30, 2019?

a. $300,000

b. $260,000

c. $200,000

d. None of the above