22-117 Assume That the Hedge Was Placed at the Rates

question 52

Multiple Choice

22-117 Assume that the hedge was placed at the rates in question 114,and that the BP futures contract is trading at $1.62/£.Assume the futures contract has some days remaining to maturity.What will be the gain or loss on the hedge if it is unwound at this price?

• A)$4,280,000 loss.
• B)$4,000,000 loss.
• C)$4,280,000 gain.
• D)$4,000,000 gain.
• E)$6,400,000 gain.

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Definitions:

Neglected

The condition of not receiving enough care, attention, or support, often leading to adverse effects on health, development, or well-being.

Longitudinal Study

A research design that follows the same subjects over a period of time, allowing for the examination of changes and developments.

Adolescent

A young person in the transition phase between childhood and adulthood, typically aged 10 to 19 years.

Conflict

An active disagreement or struggle between individuals or groups, which can occur at interpersonal, communal, or international levels, often driven by differing interests or beliefs.