How many contracts should gd buy or sell

Assignment Help Accounting Basics
Reference no: EM133048560

Question - Generous Dynamics maintains an inventory of 15000 ounces of gold. The company is interested in protecting the inventory against daily price changes. The correlation of the daily change in the spot and futures price is .55, the standard deviation of the daily spot price change is 20 percent, and the standard deviation of the daily change in the futures price is 37 percent. Futures contract size is 1000 ounces. How many contracts should GD buy or sell to hedge its inventory?

Reference no: EM133048560

Questions Cloud

Computing the data sampling size : NPR is a news-based media outlet, and your other source comes from Ohio State University. The questions that both sources make me want to ask
Accommodate diversity in the workplace : Using bullet points, describe at least four (4) ways in which communication - both verbal and non-verbal - can be used to accommodate diversity in the workplace
Alternatives for data visualization : Discuss real-world scenarios for which use of histograms and boxplots are better alternatives for data visualization.
What is the expected return rate of the portfolio : What is the expected return rate of the portfolio and What is the variance of its return?
How many contracts should gd buy or sell : Question - Generous Dynamics maintains an inventory of 15000 ounces of gold. How many contracts should GD buy or sell to hedge its inventory
Find an article that talks about current events : Question 1: Background information- Have you ever considered working in this industry, being part of a team or organization that provides customers with service
Prepare journal entries to record the preceding information : In addition, borrowed $10,000 from the bank for 90 days at 12%. Prepare journal entries to record the preceding information
Explain types of sampling methods : Sampling is the process of selecting a number of individuals for a study in such a way that the individuals represent the larger group from which they were sele
What is the level conflict : Q1. What is the level conflict? Detail the conflict Q2. What conflict resolution and communication technique you use? Explain

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determining net purchases from the accounting records

The following amounts were obtained from the accounting records of Newton Company, Washington Inc., and Adams Company.

  How did guisti commit the fraud

Case - The Greater Providence Deposit & Trust Embezzlement. How did Guisti commit the fraud, conceal it, and convert the fraudulent actions to personal gain?

  Issued 10000 shares of common stock for a building and land

problem 11-13 effects of stockholders equity transactions on the balance sheet.the following transactions occurred at

  Compute the total price paid by abc corporation

Compute the total price paid by ABC Corporation for the bonds showing your calculation for the present value of the principal

  Which is unethical practices of the costing manager

Which is unethical practices of the costing manager? Taking into account the benefits of economies of sales and experience curve

  Calculate the total additional sales revenue

The owner wants a net income after tax of $75,000. Calculate the total additional sales revenue needed to support the desired net income

  What impact would the year-end measures

What impact would the year-end measures have on reported supplies expenditures (per GAAP)? Would your response be different if the city accounted for supplies on the consumption basis?

  Which are impacting on the financial services sector

Which hold a combined market share of 33 percent. Outline some developing interrelationships which are impacting on the financial services sector.

  Calculate the amount paid for goodwill

On March 31, 2016, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. Calculate amount paid

  Benito company began the year with owners equity of 175000

benito company began the year with owners equity of 175000. during the year the company recorded revenues of 250000

  What is the profit effect of the company

Division A has a profit of $300,000 and Division B has a loss of $100,000. What is the profit effect of the company if Division B is dropped

  The manufacturing overhead budget at cutchin corporation is

the manufacturing overhead budget at cutchin corporation is based on budgeted direct labor-hours. the direct labor

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