Future contract as a way to manage risk


Question: Sheridan is a Canadian company that conducts money transactions in US because the price of US fluctuates daily Sheridan often enters into a future contract as a way to manage risk. On September 1, 2023 Sheridan entered into future contract to sell US $91,000 for Canadian $1.10 which was the market value on September 1 the broker with whom Sheridan agreed the contract required a 10% deposit which has been paid in cash

 

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Other Management: Future contract as a way to manage risk
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