How many contracts should gd buy or sell

Assignment Help Financial Accounting
Reference no: EM133030306

Question - Generous Dynamics is planning on buying 3000 ounces of gold in six months. The correlation of the six-month change in the spot and futures price is 95. The standard deviation of six-month change in spot and futures price are 14 percent and 33 percent respectively. Futures contract size is 1000 ounces. How many contracts should GD buy or sell to hedge the future purchase?

Reference no: EM133030306

Questions Cloud

Five common methods of data gathering : Once the consulting contract is established, the next phase of the organizational development process is data gathering. Often seen as the most time consuming,
How much are the firm sales : Triangular Chemicals has total assets of $94 million, a return on equity of 43 percent, a net profit margin of 5.2 ?percent, How much are the firm sales
Explain porter five competitive forces : Explain Porter's five competitive forces. What are they and what is their importance? no plagiarism please
Organizational culture and employee retention : Compare and contrast in detail the differences between internal equity, external equity, and individual equity.
How many contracts should gd buy or sell : Generous Dynamics is planning on buying 3000 ounces of gold in six months. How many contracts should GD buy or sell to hedge the future purchase
Review profit and productivity performance : Why is it important to analyse and interpret budget and actual financial information to monitor and review profit and productivity performance?
Advantages and disadvantages of internet recruiting : What are some of the advantages and disadvantages of internet recruiting, and what are some of the legal issues associated with the same?
Calculate the unit sales needed to attain a target profit : Lin Corporation has a single product whose selling price is $140 per unit. Calculate the unit sales needed to attain a target profit of $6,250
What will the cash flows for this project be : The original cost of the old oven was $31,000; it is now five years old, and it has a current market value of $13,000. What will the cash flows for this project

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much must be saved for retirement

Approximately how much must be saved for retirement in order to withdraw $100,000 per year for the next 30 years if the balance earns 5% annually

  Journalize each transaction

Indicate the effect each transaction has on the accounting equation (Assets = Liabilities + Owner's Equity), using plus and minus signs.

  What steps do you suggest that the company take

What flexibility exists in the cash budget to reduce or defer cash outlays and what steps do you suggest that the company take. Be specific and use an example.

  Find how many shares of treasury stock

How many shares of treasury stock are there? Masie Inc. has provided the following data about its $0.10/share par value common stock

  Prepare a flexible budget report for the year

Based on the static budget report: Prepare a flexible budget report for the year. Did management do a good, average, or poor job of controlling expenses?

  How much bank financing is needed to eliminate the past-due

How much bank financing is needed to eliminate the past-due accounts payable? Enter your answer as a positive value. Do not round intermediate calculations.

  Find the amount each will receive

Bank A: offers 9.1% compounded annually. Bank B: offers 9% compounded monthly. Which bank provides a better deal for him? Explain.

  Compute the eps amounts that taylort should report

Compute the EPS amounts that TaylorT should report for 20X2 and Dividends were declared and paid semi-annually, on 31 May and 30 November.

  Company is nonprofit entity and governmental entity

Prompt: Consider that a company is a nonprofit entity and a governmental entity. Discuss the reporting requirements for each and how they differ from a for-profit entity. Explain how you would address compliance with GAS in nonprofit and governmental..

  Calculate total annual amount of debt and savings payment

If she has any of her $18,000 remaining after her credit card, auto loan, and savings are made offer advise on how this should be divided

  List the three main types of business activities

List the three main types of business activities on the statement of cash flows and give an example of each.

  Determine what is the bond nominal yield to call

Determine What is the bond's nominal yield to call? The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,050.

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