Decides to sell forward its excepted copper production

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Reference no: EM131073256

Suppose CDE mines copper with fixed costs of $0.5/lb and variable costs of $0.4/lb. If CDE decides to sell forward it’s excepted copper production at the 1 year forward price, what is its’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: EM131073256

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