Copper with fixed costs, Suppose CDE mines copper with

Copper with fixed costs

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Reference no: EM131073244

Suppose CDE mines copper with fixed costs of $0.5/lb and variable costs of $0.4/lb. The 1 year forward price for copper is $1/lb. If CDE does nothing to manage risk. What is it's profit 1 year from now, per pound of copper, if the price of copper in one year is $0.9 or $1.0, or $1.1?

Reference no: EM131073244

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