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The following question is based on these facts: The second transaction relates to a futures contract from March 1 of last year used to
The following question is based on these facts: The second transaction relates to a futures contract from March 1 of last year used to hedge the risk of change in the value of our inventory. As of the end of December, we had an unrealized gain of $12,000 on the futures contract and a $12.050 unrealized loss due to a decrease in the fair value of the Inventory. Enter profits as positive whole dollars and losses as negative whole dollars (use a "" to reflect a negative such as "-1750) What net dollar impact will this hedge have on current earnings? Numeric Response
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