Business, 08.05.2021 05:00 callmedarthvadorplz
A bus company believes that its diesel fuel expenses might rise in the coming year and wants to create a hedge against the increase. The current price of diesel fuel is $3.50/gallon, and the company uses 10,000 gallons per month. The company purchased a futures contract for 10,000 gallons of diesel at $3.50/gallon to be delivered in six months. The price of the contract was $250.00. In six months, the spot price of diesel fuel is $3.85/gallon. The bus company accepted delivery of the contract commodity. What was the economic substance of the futures contract
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A bus company believes that its diesel fuel expenses might rise in the coming year and wants to crea...
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