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Not often when one makes a decision are the results so quickly realized! Back in July 1998, when the exchange rate was JPY145 (Japanese yen) to the US dollar, Charles Bobbin, treasurer of Global Marine Partners chose to use currency options to hedge the potential yen exposure created by the signing of an agreement between Global Marine and a major Japanese shipbuilder for the purchase of two new VLCCs (very large crude carriers). Now, with the yen/US dollar rate in the 140 range, the decision seemed to have proved correct. Nevertheless, Bobbin was not in a position to rest on his laurels. A number of people were interested in what should be done now to take advantage of the profit in the option position. One proposal was to sell the existing options and replace them with new ones. Of course, Bobbin could simply keep the options open. He was also concerned about the accounting for these options in view of the Financial Accounting Standards Board?s (FASB) new opinion on derivatives.