Question
You and a counter-party have entered into a cash-settled forward contract, settling in one month, whereby you will pay 55/barrel for 100,000 barrels of crude
You and a counter-party have entered into acash-settledforward contract, settling in one month, whereby you will pay 55/barrel for 100,000 barrels of crude oil, and the counter-party agrees to "deliver" the oil in exchange.If on the settlement date, crude is 62/barrel, then on that date:
A.you are required to pay 7x100,000 to the counterpart
B.the counterparty is required to pay 7x100,000 to you
C.you are required to pay 62x100,000 to the counterpart
D.the counterparty is required to pay 55x100,000 to you
E.the counterparty is required to pay 62x100,000 to you
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
