How much did the shirt factory save by hedging cotton

Assignment Help Basic Statistics
Reference no: EM132854287

The T-shirt Factory purchased 12 futures contracts on cotton at a quoted price of 55.50 as a hedge against its inventory needs. At the time it actually needed the cotton, the spot price was 56.1. Cotton futures are based on 50,000 pounds and quoted in cents per pound. How much did the Shirt Factory save by hedging cotton?

Reference no: EM132854287

Questions Cloud

Acute care and community health : Evaluate how need, demand, quality, and customer (patient) satisfaction for prevention and non-acute services are measured.
Explains the importance of aligning tangible and intangible : Distinguishes the cultural variables that inhibit or support change. Discusses principles of change and how organizational culture develops through the stages.
Calculate the intrinsic value of bond : ABC Ltd issued bonds having a maturity. The present interest rate is 12% for one year tenure. Calculate the intrinsic value of bond
Describing the population-parameter-sample-statistic : Find an article on a Web site that describes the results of a statistical study in which a statistic from a sample was used to estimate a parameter
How much did the shirt factory save by hedging cotton : Cotton futures are based on 50,000 pounds and quoted in cents per pound. How much did the Shirt Factory save by hedging cotton?
What amount should suho company report : On December 31, 2018, it is not expected that Suho Company will provide further financial support for Jug Company. What amount should Suho Company report
What is the mean and standard deviation of the proportion : What is the mean and standard deviation of the proportion p-hat of the sample who know more than two digits of pi?
About the importance of quality within the workplace : You have learned about the importance of quality within the workplace along with the tools and techniques that can be used to ensure
Sampled the training data set into train : You are working on a classification problem. For validation purposes, you've randomly sampled the training data set into train and validation.

Reviews

Write a Review

Basic Statistics Questions & Answers

  Estimate the hdl

A doctor wants to estimate the HDL. How many subjects are needed to estimate the HDL within 3 points with a 99% confidence. Assuming s=13.9

  Probability of drawing heart on first-club on second draw

Two cards are drawn successively and without replacement from an ordinary deck of playing cards. Compute the probability of drawing-- A heart on the first draw, a club on the second draw.

  What proportion of people have borderline cholesterol

A person is regarded as having high cholesterol if Z > 2.0 and borderline cholesterol if 1.5

  Do a formal hypothesis test

Construct a 95% Confidence interval for diffrence between the two populations. At the alpha equals .10 level of significance, can the firm conclude that Chicago households buy more online than Milwaukee.

  Describe a normal distribution of a variable

Question: Describe a normal distribution of a variable. Where in nature can you find a normal distribution?

  Find expected value of perfect information about demand

The firm's best assessment is a .3 probability of strong demand. the expected value of perfect information about demand is?

  Problem as a traveling salesman

Consider the problem of finding a shortest (forward) path in a graph with given arc lengths, subject to the constraint that the path passes through every node exactly once (the choice of start and end nodes of the path is subject to optimization).

  Find the average sample number for lots

Find the sampling plan if the producer's stipulation is to be satisfied exactly. Find the average sample number for lots that are 1.8% nonconforming.

  Compute the probability that the trajectory falls between

researchers at the university of california-berkeley have designed built and tested a switched-capacitor circuit for

  What is the critical value for of the area

What is the critical value for 5% of the area under the chi-square probability density for a random variable that has 5 degrees of freedom?

  Type of study would yield the information you need

1. You are moving to a country where malaria is endemic. From past experience you know that you don't feel well when taking anti-malarials and would like to avoid them. You want to know how much more risk you would be incurring by not using ..

  Determine number of trucks on which company should install

Using (and explaining) your own estimate for the population standard deviation, determine the number of trucks on which the company should install the hidden speed-recording device.

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