A US corporation wants to hedge a 70,000 pound payable (i. e. a £70,000 purchase).. The futures price is $0.50. If the spot rate at the time of maturity is $0.65, (a) what action should be taken by the corporation? (b) what is the total gain or loss on the position?

On january 1, year 1, purl corp. purchased as a long-term investment $500,000 face amount of shaw, inc.’s 8% bonds for $456,200. the bonds were purchased to yield 10% interest. the bonds mature on january 1, year 6, and pay interest annually on january 1. purl uses the effective interest method of amortization. what amount (rounded to nearest $100) should purl report on its december 31, year 2, balance sheet for these held-to-maturity bonds?