Financial derivatives: forward contracts a u. s. company has a forward purchase contract for delivery of euros at the end of may at a price of $1.24/€. the u. s. dollar strengthens against the euro during this period. the company will:
a. gain on the forward purchase contract
b. lose on the forward purchase contract
c. not exercise the forward purchase contract
d. continue to hold the forward contract after the end of may

The stock of grommet corporation, a u.s. company, is publicly traded, with no single shareholder owning more than 5 percent of its outstanding stock. grommet owns 95 percent of the outstanding stock of staple inc., also a u.s. company. staple owns 100 percent of the outstanding stock of clip corporation, a canadian company. grommet and clip each own 50 percent of the outstanding stock of fastener inc., a u.s. company. grommet and staple each own 50 percent of the outstanding stock of binder corporation, a u.s. company. which of these corporations form an affiliated group eligible to file a consolidated tax return?