User Account

All Pages

What is the value of your forward contract

Assignment Help Accounting Basics
Reference no: EM132862342

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: EM132862342

Questions Cloud

Reflect motivation to help relatively powerless : Reflect your motivation to help relatively powerless, disenfranchised groups of people improve their resources, their opportunities, and their quality of life.
What is the labor cost per sf of wall : A crew of 3 masons and 1 laborer work 8 hours a day for 3 days and 10 hours a day for 2 days in one workweek. What is the labor cost per sf of wall
Discuss the market offerings that are considered as product : It is said that a product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need.
What would be viable to solve the problems of the family : We can hardly afford to buy food and clothing for the kids." The question is what solution would be viable to solve the problems of this family?
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)
What do you know about probability : What do you know about probability? Do you see the concepts of probability used in your workplace or even your home (quick answer - you sure do)?
Developing lean management concepts : The Toyota Motor Company was instrumental developing lean management concepts.
What are the aspects of the nurse educator role : What is the triad of academe: Teaching, Scholarship, and Service, and be able to apply examples of each in establishing faculty goals.
What is the journal entry : He wrote cheque #489bforn$361.20 to reimburse himself for this expense. The telephone bill was $344 plus $17.20 GST. What is the journal entry

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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