Business, 13.11.2019 07:31 sethjohnson386pbnm3x

Lew jewelry co. uses gold in the manufacture of its products. lew anticipates that it will need to purchase 500 ounces of gold in october 2017, for jewelry that will be shipped for the holiday shopping season. however, if the price of gold increases, lew's cost to produce its jewelry will increase, which would reduce its profit margins. to hedge the risk of increased gold prices, on april 1, 2017, lew enters into a gold futures contract and designates this futures contract as a cash flow hedge of the anticipated gold purchase. the notional amount of the contract is 500 ounces, and the terms of the contract give lew the right and the obligation to purchase gold at a price of $300 per ounce. the price will be good until the contract expires on october 31, 2017.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 01:20

What cylinder head operation is the technician performing in this figure?

Answers: 1

Answer

Business, 22.06.2019 07:30

Read the following scenario and answer the question in 5-10 sentences. you are the owner of a small business that is a defendant in a lawsuit in federal court. you received bad news from your lawyer that the judge did not allow certain documents to be admitted as evidence in court and that the jury reached a $50,000 verdict in favor of the plaintiff. your lawyer tells you that it is within your legal right to hire him to file an appeal with the united states court of appeals. if the appellate court rules in your favor, you may be able to avoid paying part or all of the $50,000. evaluate your lawyer’s suggestion about appealing the decision.

Answers: 1

Answer

Business, 22.06.2019 09:20

Which statement best explains the relationship between points a and b? a. consumption reaches its highest point, and then supply begins to fall. b. inflation reaches its highest point, and then the economy begins to expand. c. production reaches its highest point, and then the economy begins to contract. d. unemployment reaches its highest point, and then inflation begins to decrease.

Answers: 2

Answer

Business, 22.06.2019 12:00

Simon, aged 10, is invited to a classmate's birthday party at an exclusive ski resort on march 15th. the day will include 4 hours of snowboarding, lunch and birthday cake. simon's mother checks a box on the invitation that says "yes, we will attend" and returns it to the classmate's address. unfortunately, they later don't attend the party when simon comes down with the flu. on march 17th, simon's mother receives an invoice in the mail from simon's classmate for $35 that says, "party no-show fee." can simon's classmate collect the fee?

Answers: 3

Answer

You know the right answer?

Lew jewelry co. uses gold in the manufacture of its products. lew anticipates that it will need to p...

Questions