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Pulpco contracts for logs from A1 Timber Co. ,which later made a statutory assignment of its rights and obligations to Forest Green Co.(FGC).The quality of FGC logs was less than the fine product usually delivered by A1 Timber,and for which the company was known,and Pulpco brought suit against A1 Timber on the grounds that the contract was not assignable.The court would find that the contract was assignable.
Fair Value Hedge
A type of hedge that aims to offset changes in the fair value of an asset or liability or an unrecognized firm commitment.
Forward Contract
An agreement to buy or sell an asset at a future date at a price agreed upon today, often used to hedge against price movements.
Spot Rates
The current market price at which a particular asset can be bought or sold for immediate delivery and payment.
Fair Value Hedge
A type of hedge that protects against changes in the fair value of an asset, liability, or an unrecognized firm commitment, often due to changes in interest rates or other market variables.
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