On october 30, 2020, a u. s. company forecasts that it will purchase merchandise from an italian supplier at the end of april 2021, in the amount of €100,000, and will pay the supplier on delivery. on october 30, the company enters a forward contract to buy €100,000 on april 30, 2021 and classifies it as a cash flow hedge of the forecasted purchase. on april 30, 2021, the company receives the merchandise, closes the forward contract and pays the supplier. the company's accounting year ends december 31.when the merchandise is sold by the company, what is the cost of goods sold

3. saving two consumers, larry and jeff, have utility functions defined over the two periods of their lives: middle age (period zero) and retirement (period 1). they have the same income in period 0 of m dollars and they will not earn income in period 1. the interest rate they face is r. larry’s and jeff’s utility functions are as follow. = 0.5 + 0.5 and = 0.5 + 0.5 for each person is between zero and one and represents each consumer’s temporal discount econ 340: intermediate microeconomics. ben van kammen: purdue university. rate. a. write the budget constraint that applies to both jeff and larry in terms of consumption in each period and ), interest rate, and m. b. what is larry’s and what is jeff’s marginal rate of intertemporal substitution? c. what is the slope of the budget constraint? d. write each consumer’s condition for lifetime utility maximization. e. re-arrange the conditions from part (d) to solve for the ratio, . f. if > which consumer will save more of his middle age income? g. if > 1 1+ , in which period will larry consume more: = 0 or = 1?