Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1) suppose that in september 2015 a company takes

1) Suppose that in September 2015 a company takes a long position in a contract...

90.2K

Verified Solution

Question

Finance

image
1) Suppose that in September 2015 a company takes a long position in a contract on May 2016 crude oil futures. It closes out its position in March 2016. The futures price (per barrel) is $88.30 when it enters into the contract, $90.50 when it closes out its position, and $89.10 at the end of December 2015. One contract is for the delivery of 1,000 barrels. (a) What is the company's total profit? [10% marks] (b) When is it realized? [10% marks) (c) How is it taxed if it is (i) a hedger and (ii) a speculator? Assume that the company has a December 31 year-end. [10% marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

1000 used car tires are being evaluated by a major insurance company. The quality of the...

Biology
1.2K views

with trapped debris out of the lungs microfilaments intermediate filaments flagella hairlike structures called O...

Physics
1.2K views

a 3 0 b lo c 5 0 d 9 0 11 Two coherent light...

Geometry
1.2K views

Your Turn 3 4 Find the value of x that makes s and t parallel...

Statistics
1.2K views

Determine whether the alternate hypothesis is left tailed right tailed or two tailed Ho 50...

Calculus
1.2K views

For that cost function C x 40 x C 2 use the marginal average cost...

Algebra
1.2K views

Explain how we get the S by equivalent relation.

Accounting
1.2K views

Chuck, a single taxpayer, earns $48,000 in taxable income and $14,500 in interest from an...

Accounting
1.2K views

Lerner Inc. issued bonds several years ago for more than face value. The bonds had...

Accounting
1.2K views

help please attached is a picture of instructions , chart of accounts, and journal entry...

Finance
1.2K views

Waller, Inc., is trying to determine its cost of debt. The firm has a debt...

Accounting
1.2K views

Please consider the scenario below and be aware of poor internal controls over inventory. The...