How much did you gain or lose by hedging your position

Assignment Help Financial Management

Reference no: EM131989505

You speculate in crude oil futures. Last month, you purchased ten January futures contracts at a quoted price of 99.91. These contracts are based on 1,000 barrels and quoted in dollars per barrel.

Assume the actual price per barrel is $60.20 in January. How much did you gain or lose by hedging your position?

Reference no: EM131989505

Questions Cloud

Calculate the internal rate of return on diagnostic machine : General Hospital is planning to add a new diagnostic machine which should improve its quality. Calculate the internal rate of return on the diagnostic machine.

Good indicator of a firm profitability : Are changes in profits alone a good indicator of a firm's profitability? What are the three measures of profitability that are commonly used.

Calculate her taxable income and tax liability : She takes the standard deduction. Calculate her taxable income, tax liability, and tax refund or tax owed.

Determine the overhead cost assigned to each product line : Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1.

How much did you gain or lose by hedging your position : Assume the actual price per barrel is $60.20 in January. How much did you gain or lose by hedging your position?

What will be his after-tax yield to maturity : If the investor holds the bond until it matures and collects the $1000 par value from the municipality and his marginal tax rate is 34 percent

What is this ratio intended to measure : Specialized ratios are sometimes used in specific industries. For example, the so-called book-to-bill ratio is closely watched for semiconductor manufacturers.

Bond investor may rely upon for guidance : Identify and describe the five most important ratios a bond investor may rely upon for guidance?

Find the weighted average cost of capital : The bonds have a 6 percent coupon and a 6.7 percent yield to maturity. If the tax rate is 34 percent, what is the weighted average cost of capital?

User Account

All Pages