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On October 31, Year 1, Trailer Homes Company (THC) determines that it will need to buy 175.000 lbs of aluminium siding panels on April 30

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On October 31, Year 1, Trailer Homes Company (THC) determines that it will need to buy 175.000 lbs of aluminium siding panels on April 30 Year 2 In order to hedge the risk that the price of the aluminum siding panels will increase in six months the Treasurer simultaneously takes a long position in an aluminum forward contract, where the company agrees to purchase 175,000 lbs. of aluminum for $3.756/1b on April 30 Year 2. The prices for the aluminum siding panels and the aluminum forward are as follows: Aluminum Siding/Ib. Aluminum Forward/I). October 31, Year 1 $5.390 $3.756 $5.552 $3.881 January 31, Year 1 $5.768 $3.925 April 30, Year 2 Assuming that THC has a fiscal reporting year-end of January 31, what is the net cash paid for the aluminum siding panels on 65F Sunny 70 3/1 arch On October 31 Year 1 Trailer Homes Company (THC) determines that it will need to buy 175.000 lbs of aluminum siding panels on April 30, Year 2. In order to hedge the risk that the price of the aluminum siding panels will increase in six months the Treasurer simultaneously takes a long position in an aluminum forward contract, where the company agrees to purchase 175,000 lbs of aluminum for $3.756b on April 30 Year 2. The prices for the aluminum siding punts and the aluminum forward are as follows Aluram Siwo.. Aluminum Forward / October 31 Year 1 $5 390 $3.756 $5,552 53 881 January 31 Year 1 April 30. Year 2 $5.768 $3.925 Assuming that THC has a fiscal reporting year-end of January 31 what is the net cash pad for the aluminum siding panels on April 30 after the aluminum forward contract is also settled on that date? Type here to search 60F Clear A 9:03 PM 11/22 DOLL October 31 Year1 55 390 $3.756 January 31 Year 1 $5.552 S3 881 April 30 Year 2 S5768 33.925 Assuring that THC has a fiscal reporting year end of January 31, what is the net cash paid for the aluminum Siding panels on April 30 after the aluminum forward contract is also settled on that date? CS322 525 S979,825 $1.001.700 $1009 400 Type here to search 0 O 60F Clear 0 PM 3/16/2002 DOLL

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