ABC Co. bought 20 long forward contracts for corn at strike price of $3.67 per bushel (each contract is for 5,000 bushels). How much is the profit (loss) of ABC Co. if the actual market value of corn on agreed date contract at $3.78? a. $9,500 b. ($9, 500) c. ($11,000) d. $11,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
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ABC Co. bought 20 long forward contracts for corn at strike price of $3.67 per bushel (each contract is for 5,000 bushels). How much is the profit (loss) of ABC Co. if the actual market value of corn on agreed date contract at $3.78?

a. $9,500
b. ($9, 500)
c. ($11,000)
d. $11,000

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