1.

The foreign exchange gain or loss on option contract due to change in time
value on December 31, 2024 if changes in the time value will be excluded
from the assessment of hedge effectiveness should be: P700 loss

2. On December 18, 2024, GC Trading sold a commodity to a foreign firm.

Payment of 1,000,000 foreign currencies (FC) is due on February 16,2025.
Concurrently, GC Trading paid P4,000 cash to acquire a 60-day put option
for 1,000,000 FC. GC Trading calder basis of reporting:

12/18/2024 12/31/2024 02/16/2025

Spot rate (market price) P0.16 P0.15 P0.16
Strike price (exercise price) 0.16 0.16 0.16
Fair value of call option P4,000 P13,300 P13,000

 The foreign exchange gain or loss on option contract due to change in

intrinsic value on December 31, 2024 if changes in the time value will be
excluded from the assessment of hedge effectiveness should be:
P10,000 gain

 The foreign exchange gain or loss on option contract on December

31,2024 if the time value will be included from the assessment of hedge
effectiveness should be: P9,300 gain

 The December 31, 2024 net foreign exchange gain or loss

amounted to: P700 loss

 The February 16,2025 net foreign exchange gain or loss

amounted to: P3,300 loss-current earnings