You and a counter-party have entered into a cash-settled forward contract, settling in one month, whereby you will pay 55/barrel for 100,000 barrels of crude oil, and the counter-party agrees to "deliver" the oil in exchange. If on the settlement date, crude is 62/barrel, then on that date:
a) you are required to pay 7x100,000 to the counterpart
b) the counterparty is required to pay 7x100,000 to you
c) you are required to pay 62x100,000 to the counterpart
d) the counterparty is required to pay 55x100,000 to you
e) the counterparty is required to pay 62x100,000 to you
Ans: b) the counterparty is required to pay 7x100,000 to you
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Renee's, a company selling winter clothing in Chicago, ran a preseason promotion on some of its fur jackets, offering cash refunds if the snowfall in the customer's market area turned out to be below average. This exemplifies ________
A) puffery B) satisficing C) prospecting D) a price pack E) a rebate
Identifying the key decision variables in a decision model is considered to be part of "model solution."
Indicate whether the statement is true or false