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But the price was probably settled well in advance, so the seller was left taking on market risk, which depending on the way things went, could have been anythi
by rebuilder 4y ago
But the price was probably settled well in advance, so the seller was left taking on market risk, which depending on the way things went, could have been anything between a bad loss or a nice windfall. Less likely the latter, I would expect, since they were forced to sell the cotton in Bombay or cover the cost of transport elsewhere.
- ghaff 4y ago>But the price was probably settled well in advance, so the seller was left taking on market risk, No. That was the whole problem. It was for market price when the cargo arrived and the price of cotton jumped between October and December. So the buyer didn't want it any longer and basically claimed they thought it was going to be on the October boat.