User Account

All Pages

What will your futures contract gain or loss be

Assignment Help Financial Accounting
Reference no: EM132973172

Question - You recently sold some goods to an importer in Switzerland and, during the negotiations, you agreed to invoice the goods in francs, knowing that you will need to convert the francs to dollars upon receipt. The current exchange rate is $0.60 per franc, and the invoice will be for 375,000 francs. Payment is due in 60 days. You decide to hedge your exposure using futures contracts.

Required -

How many futures contracts will you need? Show your work.

Will you create buy hedge or a sell hedge? Why?

What will your futures contract gain or loss be if you transacted the future contracts at the futures rate of $0.63, while the futures rate decreases to $0.61. Show your work.

Reference no: EM132973172

Questions Cloud

What be oci impact from gain on plan asset for hi-flie-ing : The company also recorded, during 2019, $200,000 as Past Service Costs which were assumed. What would be the OCI impact from gain or loss on Plan Assets?
What amount should be reported as doubtful accounts : During 2021, sales revenue totaled P21,200,000, cash collected from customers amounted to P19,800,000, What amount should be reported as doubtful accounts
What be interest expense on defined benefit obligation : $546,000 were recorded as current services costs during 2019. What would be the interest expense on the Defined Benefit Obligation for 2019?
What do think is going to be the working capital requirement : Retaews' is a premium sweater making company. What do think is going to be the working capital requirement of Retaews? Why?
What will your futures contract gain or loss be : What will your futures contract gain or loss be if you transacted the future contracts at the futures rate of $0.63, while the futures rate decreases to $0.61
What was service cost for year for tyree corporation : The discount rate applied by the actuary was 8%. There was no actuarial revaluation required nor any past service cost. What was the service cost for the year?
Find how should the company record change on the pension : The balance in the Defined Benefit Obligation on December 31, 2019 of a pension plan. How should the company record this change on the pension worksheet?
How does a project manager build a project team : How does a project manager build a project team? What are some of the key concepts when creating a project team? Cite three scholarly
Find what entry reflected in pension fund work sheet should : A pension plan paid out benefits amounting to $343,200 during the year to retired plan members. The entry reflected in a pension fund work sheet should show?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find what is the net present value of the best-case scenario

The depreciation expense is $17,800. The sale price is estimated at $45/unit, give or take 3%. What is the net present value of the best-case scenario?

  What is residual income that is available to mr heffernan

Mr. Donald Heffernan, a 35 years old account, What is the residual income that is available to Mr. Heffernan after satisfying the needs for his financial plan?

  What is the interest expense amount atwood inc recorded

What is the interest expense amount Atwood Inc. recorded in 2020? Atwood Inc. signed a note payable on 07/01/2019 which requires the firm to pay $7,000

  Retirement account to achieve your goal

Suppose that you are age 25 today and plan on retiring at age 65. You determined that you need to have saved $529899 in real dollars by the time you retire. How much must you contribute (in real dollars) each year to your retirement account to achiev..

  Prepare a financial analysis of your corporation

Write the name of the corporation, the stock market where it is traded. State why you want to study and prepare a financial analysis of your corporation.

  Calculate the expected standard deviation on stock

Calculate the expected standard deviation on stock? State of the economy, Probability of the state, Percentage returns, Steady economic growth

  What is the cost of common stock for pathos

Dividends and earnings per share are projected to be at a growth rate of 15% annually. What is the cost of common stock for Pathos?

  Explain how the double-declining-balance method is computed

Explain how the Double-declining-balance method is computed and provide an example of how this method could be used on a new delivery truck purchased for $30,000 to be used for 4 years with a salvage value of $5,000 for year one only.

  Find what is the percentage of the founders family votes

Find What is the percentage of the founder's family votes to Class B votes? (Do not round intermediate calculations. Input your answer as a percent rounded)

  What is the expected balance in accounts payable

What is the expected balance in Accounts Payable as of April 30?

  Prepare an income statement for june

Prepare an income statement for June. Hoth manufactures cold weather clothing. At the end of June , 2019, the accountant for Hoth compiled information.

  Involves the utilization of constrained resource

Which product would be selected in a decision that involves the utilization of a constrained resource?

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