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What if your current inventory of crude oil is worth 12 million. You wish to hedge its downside risk. With a na and iumlve hedge how many FUTURES CONTRACTS should be sold if f 71.25 and S 83 The size?
Wiki User
∙ 6y ago
Your current inventory of crude oil is worth $12 million. You wish to hedge its downside risk. With a naïve hedge, how many FUTURES CONTRACTS should be sold if f = $71.25 and S = $83? The size of one crude oil futures contract is 1,000 barrels
Wiki User
∙ 6y ago
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Is Closing Inventory is it a current asset?
is closing inventory a current or non current asset
Is ending inventory asset or liability?
asset Inventory is a current asset so when the required inventory is utilized the remaining inventory still remain as asset and not become liability. For example inventory of $100 purchase to use for production which is our current asset. when inventory of $90 utilized the remaining $10 is still our current asset while $90 become expense for production of units.
What information is the on Gas Futures?
There is no site called Gas Futures. To trade in gas futures, you would need to get information about current gas production and the price of gas. Expert outlooks about gas prices would also be useful.
A commodity futures market exists within the boarder commodities market for which reasons?
Finding prices: Buyers and sellers can trade standardized contracts for commodities at a later date on the futures market. This works with cost disclosure as market members altogether decide the fair worth of the item founded on market interest elements. Management of risk: Commodity producers and consumers can hedge against price volatility through futures contracts. Market participants are able to manage their risk exposure and protect themselves from adverse price movements by locking in a future price through futures contracts. Investment and speculation: Speculators and investors who seek to profit from commodity price fluctuations without actually owning or delivering the underlying asset are drawn to the futures market. Market liquidity is improved, and opportunities for capital appreciation are created as a result. Possibilities of arbitrage: Arbitrage opportunities are made possible by the futures market. By buying low in one market and selling high in the other, traders can take advantage of price differences between the spot market, which is the current market price, and the futures market. a more efficient market: By allowing market participants to make informed decisions based on available price and market information, the futures market makes efficient resource allocation easier. It makes it possible for efficient price formation and overall market stability by providing a platform for trading commodities that is both transparent and regulated.
What is inventory personnel?
Inventory personnel is a comprehansive assesment of current human resources for future forecasting
The inventory method which results in the inventory value on the balance sheet that is closest to current cost is the?
FIFO
Does inventory go on a balance sheet?
Yes inventory is part of current assets portion of balance sheet as it is usable in current fiscal year for revenue generation.
What companies trade djia futures?
"Dow Jones is the company that does the trading of DJia futures. It stands for Dow Jones Industrial Average, and gives the current and future stock market ratings."
What will this do to its current ratio If a company has a current ratio of 2 to 1 and purchases inventory on credit?
Because inventory adds nothing to the numerator of the ratio and the increased liability adds to the denominator, a purchase of inventory on credit will decrease the quick ratio.
What is inventory on the balance sheet?
Inventory is that amount which is used in current fiscal year for production of goods to revenue generation.
What is the settlement day when dealing with gold futures?
The settlement day when dealing with gold futures is the day you decide to cash in on the current value of gold. The amount you make will depend on the value of gold on that day.
Who are free agents for the hockey?
Players with out contracts to a current team
