AI Khayar Company (Oman) produces and sells office furniture and lumber is one of the essential materials in production. In the coming year, it is expected that there will be a scarcity in the supply of lumber. To protect itself from the risk of shortage in lumber, Al Khayar makes a forward contract with a supplier of lumber in Oman. Depending on this contract, Al-Khayar company will receive 13600 tons of lumber and make payment 1 year later. At the maturity date of the contract, the actual rate is 109 OMR/ton. The contract causes 55460 profit to Al-Khayar. Using the given information find the contract rate. Select one: Oa. 104.9221 Ob. 109.4078 Oc. 113.0779 Od. 149.7794

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Al Khayar Company (Oman) produces
and sells office furniture and lumber is
one of the essential materials in
production. In the coming year, it is
expected that there will be a scarcity in
the supply of lumber. To protect itself
from the risk of shortage in lumber, Al
Khayar makes a forward contract with a
supplier of lumber in Oman. Depending
on this contract, Al-Khayar company will
receive 13600 tons of lumber and make
payment 1 year later. At the maturity
date of the contract, the actual rate is
109 OMR/ton. The contract causes
55460 profit to Al-Khayar.
Using the given information find the
contract rate.
Select one:
Oa. 104.9221
Ob. 109.4078
Oc. 113.0779
Od. 149.7794
Transcribed Image Text:Al Khayar Company (Oman) produces and sells office furniture and lumber is one of the essential materials in production. In the coming year, it is expected that there will be a scarcity in the supply of lumber. To protect itself from the risk of shortage in lumber, Al Khayar makes a forward contract with a supplier of lumber in Oman. Depending on this contract, Al-Khayar company will receive 13600 tons of lumber and make payment 1 year later. At the maturity date of the contract, the actual rate is 109 OMR/ton. The contract causes 55460 profit to Al-Khayar. Using the given information find the contract rate. Select one: Oa. 104.9221 Ob. 109.4078 Oc. 113.0779 Od. 149.7794
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