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All-American Company bought inventory for 30,000 FCs on December 1, 2015 and paid for it on January 30, 2016. They did not hedge this transaction.
All-American Company bought inventory for 30,000 FCs on December 1, 2015 and paid for it on January 30, 2016. They did not hedge this transaction. In which case below would they always record a gain on 12/31/15? a. if the selling spot rate increases between 12/1 and 12/31. b. if the selling spot rate decreases between 12/1 and 12/31. c. if the buying spot rate increases between 12/1 and 12/31. d. if the buying spot rate decreases between 12/1 and 12/31.
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