Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem - Cash Flow Hedge: Call Options
On March 1, 2020, Prairie Farms forecasts that it will purchase 1,000,000 units of a commodity in six months. To hedge against rising prices, Prairie Farms invests in 1,000,000 September 2020 call options for the commodity. The call options have a strike price of $3.30 per unit, and cost $0.65 each. The current market price of the commodity is $3.25 per unit. The intrinsic value of the options is designated as the hedging instrument, and the option investment qualifies as a cash flow hedge of the forecasted purchase. Changes in option time value are reported directly in income. On June 30, 2020, the market price of the commodity is $3.40 per unit, the options have a market price of $0.50 per unit, and Prairie Farms sells the options.
Required - Prepare the journal entry to record the sale of the options.
Financial Statement Analysis and Preparation
Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?
An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.
Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.
This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited
Prepare general journal entries for Goela Ltd
Prepare the journal entry to record the acquisition of the assets.
Prepare general journal entries to record the transactions, assuming use of the periodic inventory system
Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.
Explain the IASB Conceptual Framework's perspective of users and their decisions.
T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd