Fundamentals of Futures and Options Markets Essay

E) Does the agreement between Photolab Ltd and Photoproduction Ltd require the approval of shareholders? If so, why? (8 Marks)

Futures are a contract or legal agreement, where an investor agrees to purchase a certain amount of a physical good or financial asset on a specific date for a set price.

v. This is applicable to our case because the negotiation and contract signing payments can be considered arrangement considerations because the payments are fixed and therefore, should be allocated over the three

2.  Chen, a retail seller of fruit, entered into a contract for the purchase of 10 bushels of peaches from Georgina, at a price of $5 per bushel. Delivery was to be in one month. One week after this contract was formed, unexpected cold weather destroyed most of the peach crop and prices doubled. Georgina asked Chen if he would agree to a price increase to $7 per bushel,

c. This was an implied-in-fact contract and the buyers were required to pay the fair

c. The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed.

(A) if such contract or interest therein has a basis for determining gain or loss in the hands of a transferee determined in whole or in part by reference to such basis of such contract or interest therein in the hands of the transferor,

3.) . Should the February 1, 2012, agreement and the May 1, 2012, agreement be accounted for separately or as a single arrangement?

2. When treasury stock is sold for an amount greater than cost, the difference should be

b. The fair value of a liability cannot differ from the amount appearing on the balance

b) the nature of takeover (it can be considered as “Insider Trading”, and to avoid litigation by shareholders, an acquirer may need to pay premium)

Younger L.J: in all cases the obligation must, “be such as, in view of the surrounding circumstances, was within the reasonable contemplation of the parties at the time when the transaction was entered into, and was at that time within the grantor’s power to fulfil.”

Introduction: In this assignment I will go over a few legal terms in relation to contract law. I will also talk about a few precedents that help explain the law.

Contracts Exam Question (with sample answers) Question 1 H. Bigbus (B hereafter) operates a construction supply business in Harrisburg. B specializes in supplying difficult-to-locate plumbing and light fixtures for contractors who do remodeling work. B sent the following letter to five contractors in the Harrisburg region: OFFER TO THE TRADE We have cornered the market for a source of brass "Orient Express" wall hanging light fixtures. We know (and we're sure that you do, too) that these fixtures are in such great demand that they are nearly impossible to obtain. If you are willing to take all your needs from us, we'll guarantee delivery at $20.00 each. I. M. Sap (S hereafter), a contractor who remodeled about twenty houses per year,

According to Goel and Gutierrez, they investigated that fluctuating procurement price is one of the causes of inventory risk and through trading appropriate numbers of futures or forward commodity contracts reduces inventory related costs for effective hedging. Hedging and the price discovery functions of futures markets facilitates not only a better inventory management but enhances the efficiency of marketing operations, production and storage.