Hedge the price uncertainty of soybeans

Assignment Help Finance Basics
Reference no: EM132515698

Suppose a soy milk company has projected a need of 10,000 bushels of soybeans for the next six months. What is the strategy for the company to hedge the price uncertainty of soybeans? (Standard soybean futures size is 5,000 bushels per contract)

Group of answer choices

short 2 soybean futures

long 2 soybean futures

none of the above

Reference no: EM132515698

Questions Cloud

Develop a sense of ownership and a spirit of innovation : A nursing unit has a high capacity for delivering quality when the leadership has a positive impact. The leader needs to have appropriate characteristics.
Microsoft skill application : The first step is to select an organization. The organization can be a company, a school, or a not-for-profit.
Should sedili hospital outsource its food-service operation : What factors, other than financial, should Sedili Hospital consider before making the final decision? Should Sedili Hospital outsource food-service operation
Journalize the entry to record the interest payment : On December 31, 6, Morris Company issued $300,000 of 20-year, 3% bonds for $196,000. Journalize the entry to record the interest payment
Hedge the price uncertainty of soybeans : What is the strategy for the company to hedge the price uncertainty of soybeans? (Standard soybean futures size is 5,000 bushels per contract)
MITS4001 Business Information Systems Assignment : MITS4001 Business Information Systems Assignment Help and Solution, Victorian Institute of Technology - Assessment Writing Service
Discuss cultural development of the african american in us : Discuss the cultural development of the African American and Amish heritage in the United States. What are the cultural beliefs of the African American.
What is the standard deviation of the return of portfolio : What is the expected return of this portfolio? What is the standard deviation of the return of this portfolio?
Prepare the journal entry for the interest revenue : Prepare the journal entry for the interest revenue and discount amortization under the effective-interest method at December 31, 2018

Reviews

Write a Review

Finance Basics Questions & Answers

  Nature of the purchase contract

Wansley realizes that the cash flows in Years 1 to 20 might be $30 million per year or $50 million per year, with a 50% probability

  What could you do to help the firm survive

What could you do to help the firm survive and grow through these times and manage the finances appropriately?

  What was net capital spending for 2011

The company's 2011 income statement showed a depreciation expense of $385,000. What was net capital spending for 2011?

  Define the components of active portfolio returns

Define the four components of active portfolio returns according to the Brinson, Beebower, & Hood performance decomposition.

  What is the total dollar return on investment

Today, you sold your shares for $43.25 per share. What is the total dollar return on this investment?

  What is the future value

What is the future value of $200 in 24 years assuming an interest rate of 13 percent compounded semiannually?

  Npv of the temporary housing facility

What is the NPV of the temporary housing facility to the nearest dollar?

  What is the estimated price of a share of storico stock

Storico just paid a dividend of $0.45 per share. The company has an ROE of 9% and a book value of $15 per share. The required return on investment is 12%. What is the estimated price of a share of Storico stock?

  Confidence affect the sample size? required

Suppose the doctor would be content with 95 % confidence. How does the decrease in confidence affect the sample size? required?

  Make Golden City Barbershop income statement

A Preparing financial statements Presented here are the accounts of Golden City Barbershop for the year ended December 31, 2016.

  Use equation method to determine the break even point

Blackmon Manufacturing Corporation makes a product that it sells for $50 per unit. The Corporation incurs variable manufacturing costs of $14 each unit. Variable selling expenses are $6 each unit,

  Reducing overhead costs

Perform an Internet search using the phrase "reducing overhead costs". Select and read a case study or article from the results of your search.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd