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What is the derivative asset or liability on december

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Question - Astoria Company regularly hedges its purchase requirements and the sale of its finished products in the futures market. On November 1, 202, the entity entered into the following three contracts designated as cash flow hedge:

Types of Contract

Quantity

Future strike price

Market price 12/31/2021

Purchase cotton

100,000

85

75

Purchase wool

150,000

90

110

Sell shirts

90,000

350

400

All three contracts are to be settled on January 1, 2022. What is the derivative asset or liability on December 31, 2021?

Reference no: EM133185854

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