A firm enters a long six-month forward contract on 5000 troy

jagguarpaw January 20, 2017 0 Comments

Question: 2. a firm enters a long six-month forward contract…

  1. A firm enters a long six-month forward contract on 5000 troy ounces of silver. The forward price is 16.795 per troy ounce. If, in six months, the price of silver is $16.75 per troy ounce, what is the cash flow if the forward contract settles in cash?