Furthermore, secured claims and administrative expense claims are paid ahead of unsecured claims. To make matters a bit more Â­confusing, Section 364(c)(1) provides that certain Â­super-priority claims are to be paid even Â­before administrative expense claims.
The market price of a commodity that is quoted in the news is often the market futures price for that respective commodity. As with equity securities, a commodities futures price is determined primarily by the supply and demand for the commodity in the market. For example, let's look at oil. If the supply of oil increases, the price of one barrel of oil will decrease.
A single-payment swap is the same thing as a cash-settled forward contract. An example of a commodity swap An industrial producer, IP Inc., needs to buy 100,000 barrels of oil 1 year from today and 2 years from today. The forward prices for deliver in 1 year and 2 years are $20 and $21/barrel. The 1- and 2-year zero-coupon bond yields are 6% and 6.5%. An example of a commodity swap IP can guarantee the cost of buying oil for the next 2 years by entering into long forward contracts for 100,000 barrels in each of the next 2 years.