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4G 11. 8:14 wols moodle 1.du.edu.om = Al-Jadeed (Oman) company needs 300 tons of cotton for its production next year. However, because of changing prices
4G 11. 8:14 wols moodle 1.du.edu.om = Al-Jadeed (Oman) company needs 300 tons of cotton for its production next year. However, because of changing prices they want to buy this cotton from now to protect themselves from an increase in prices. Cotton price is now 50 OMR per ton. Al-Jadeed company finds Oman Cotton Company (OCC) for making a forward contract. (OCC) agrees to sell cotton 53 OMR per ton. They make a one-year forward contract. What is the profit or loss of Al-Jadeed if actual market price of cotton 1 year later is 52 OMR per ton? Select one: O a. 300 OMR profit b. 300 OMR loss c. No Profit or Loss O d. 1200 OMR profit Previous page Next page
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