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
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
Section: Chapter Questions
Problem 1PS
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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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