User Account

All Pages

What is the value of your forward contract

Assignment Help Financial Accounting
Reference no: EM132860264

Problem - You entered into a forward contract on July 1, 2019 to sell 100,000 metric tons of coal at $58 per metric ton on January 1, 2022- You need to value your forward contract on March 1, 2021. The March 1T 2021 coal spot price is $67- Ten-month LIBOR is 1-65%- Storage costs for the next ten months are 4% of the value of the coal (expressed as an annualized ?gure). The convenience yield in the coal market is zero. What is the value of your forward contract (with a positive number indicating an asset and a negative number indicating a liability)?

Reference no: EM132860264

Questions Cloud

What entry or entries will Gideon make : Gideon received a check for the full amount of $2,000 from Hopkins. On July 10, what entry or entries will Gideon make to record the recovery of the bad debt
How do vision statements affect strategic management : How do vision and mission statements affect the strategic management process? Select an example of strong vision and mission statements and include them here.
Compare and contrast group structures : Compare and contrast one group structure to another group structure. An example might be a well-known youth gang versus a mafia group.
Determine the significance or validity of models : Describe the differences between the industrial organization and the resource-based models of above-average returns.Determine the significance of model.
What is the value of your forward contract : What is the value of your forward contract (with a positive number indicating an asset and a negative number indicating a liability)
Fits the common profile of the serial murder offender : Discuss if the offender fits the common profile of the serial murder offender. This requires much more than providing a biography of the serial killer.
Provide practical short term and long term digital marketing : Provide practical short term and long term digital marketing strategic and tactical recommendations. Considering the Hubspot intelligence
Compute the acid-test ratio for Marjoram Company : The condensed balance sheet and income statement for Marjoram Company are presented below. Compute the acid-test ratio for Marjoram Company
Explain the power of suppliers force for zara company : Please explain the power of suppliers force (Porter's Five forces) for Zara company.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Sole proprietorship using the cash method of accounting

Samantha is an accountant who operates as a sole proprietorship using the cash method of accounting. Samantha’s had a great year this year (2014) but she is worried that the additional income she has earned will push her into a higher tax bracket. Sh..

  Determine the fair value of the debentures at time of issue

ACC204 - Advanced Financial Accounting Questions. On 1 July 2015 Kruger Ltd privately issues $1 million in six-year debentures, Determine the fair value

  How much should you pay for a ara corporation bond

How much should you pay for a $1,000 ARA Corporation bond? If you are given RM90,000, how many units of bond can you purchase?

  Find which statements not true about times-interest-earned

Find which statements is not true about the times-interest-earned ratio? The smaller the times-interest-earned the lower the financial risk of the company.

  Identify and rank the importance of explicit issues

BUSI 1043 Introduction to Financial Accounting - Yorkville University - Develop an ability to identify and assume an assigned role

  Why does holmes want reeds - inventory reduction sale

Why does Holmes want Reed's to have an inventory reduction sale, and what does he think will be accomplished by it?

  Would holding period return on the investment be and why

Assume that you bought an 8% coupon bearing bond with 4 years. Would your holding period return (HPR) on the investment be necessarily the same as 8%?

  Prepare the cash flows from investing activities section

Prepare the cash flows from investing activities section and the schedule of noncash investing and financing transactions of the statement of cash flows.

  What benefits are achieved while repurchasing stock

When stocks repurchase is preferred over dividend payment and what benefits are achieved while repurchasing stock? Provide the suitable example.

  How much of the liabilities are classified as long-term debt

How much of these liabilities are classified as long-term debt? How much of their debt is maturing in each of the next five years? How much is maturing in more than five years?

  Estimate goodwill for this transaction

For this specific industry, 19% is considered a normal rate of return on net assets. Estimate goodwill for this transaction using the capitalization of excess

  Why would the profit margin ratio of fedex not match

Why can it be misleading to compare a company's financial ratios with those of other firms that operate within the same industry.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd