Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Farmer Fred knows that he will have to purchase 360kg of Dynamic Shifter fertiliser when it comes time for him to sow his new season of crop, sometime in September or October. Exactly when he plants the crop will depend upon when temperatures get above 25 degrees Celsius on a regular basis. Farmer Fred has had bad experiences with volatile Dynamic Shifter prices in previous years. His planned budget never seems to be executed due to prices being very different to his expectations, and in desperation he has sought the help of a friend, Hedger Harry. Hedger Harry has recommended that Fred use Dynamic Shifter futures to hedge his exposure to price movements in the fertiliser.
There are September and December futures contracts available. However, deeming the maturity of the September futures to be too soon, Fred decides to take out a long position on December delivered Dynamic Shifter futures at $2.15/kg.
On September 23 Fred decides that temperatures are high enough to sow the crop. He subsequently closes his position on December Dynamic Shifter futures, which are then trading at $2.48.
a) If the spot price on September 23 of Dynamic Shifter fertiliser is $3.43/kg, calculate the price per kg Farmer Fred ends up paying for the 360kg of Dynamic Shifter he required. Ignore the effect of the time value of money. Give your answer in dollars and cents to the nearest cent.
Price/kg = $
b) Farmer Fred is better off worse off by implementing the futures strategy.
Students should understand how to use the financial information and tools learned in the class on a public company, obtain public company SEC reports.
(a) Find the amplitude, period, and phase shift of y = 3sin[π(x – 1/3)] (b) A ladder leans against a verfical wall of a building so that the angle between the ground and the ladder is 72° and its bottom on the ground is at 3m from the wall. How long ..
question 1 suppose you are asked to conduct a study to determine whether smaller classes lead to improved student
atlas corp. wants to raise 4 million via a rights offering. the company currently has 450000 shares of common stock
Given the following information calculate the Accounting Rate of Return (ARR gross).
Their capital structure includes both preferred and common stock and they paid $10,000 and $15,000 respectively in dividends. Given all that I need you to tell me three things: What was their federal tax bill, what was their average tax rate, what ..
What percentage of the total assets controlled by Scully Corporation does its common stock equity represent? If another company owns 15% of the common stock of Scully Corporation and, by virtue of this fact, has voting control, what percentage of the..
A 9-year bond has a yield of 6% and a duration of 7.982 years. If the market yield changes by 35 basis points, what is the percentage change in the bond's price? The percentage change in the bond's price is %? decrease or increase?
Do leading indicators tend to give longer warnings before peaks or before troughs? What is the implication for the investor?
As a manager, it is important to understand how decisions can be analyzed in terms of alternative courses of action and their likely impact on a firm's value.
what return on equity do investors seem to expect for a firm with a 55 share price an expected divident of 5.50 a beta
What are the similarities and differences in doing so for a mature, established company? Please provide at least 2 paragraphs.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd