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Use the Following Information to Answer Bellow Questions

Question 11

Multiple Choice

Use the following information to answer bellow questions
Continue with the information used for questions . Thirty days after year-end, it is now 2021 and the market value of the inventory is $785,000. The company closes the futures contract and sells the inventory on the spot market for $785,000.
-What is the net cash inflow from the inventory and the hedge over the two years, assuming the inventory was purchased during this period?


A) $50,000
B) $15,000
C) $35,000
D) $20,000

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