Question
On February 1, 2022, Price Energy entered into a futures contract to buy 5,000 barrels of oil at $55 per barrel. The contract specified delivery
On February 1, 2022, Price Energy entered into a futures contract to buy 5,000 barrels of oil at $55 per barrel. The contract specified delivery for May 1, 2022. Spot prices for crude oil during the contract period are provided below.
| February 1 | March 31 | May 1 | |
| Price of crude oil (per barrel): | $55 | $58 | $56 |
At what amount would Price Energy report for the futures contract in its March 31, 2022 balance sheet?
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Short Term Financial Management
Authors: Ned C Hill
1st Edition
0023548207, 978-0023548208
