What is the current 1-year forward price

Assignment Help Business Management
Reference no: EM132899016

The current price of soybean meal is $193.10 per ton. The current interest rate is 4.12% per year. The holder of soybean meal does not receive any direct cash payments from holding the asset, but does have to pay storage costs. Storage costs routinely run $5.00 per ton, per year. Unfortunately, the holder of soybean meal derives no extra benefit (convenience) from holding the asset.

A. What is the current 1-year forward price for one ton of soybean meal?

B. Suppose you entered 5 forward contracts to purchase soybean meal at the price determined above. Six months later, however, you decide you will no longer need any soybean meal. Given that 6-month forwards currently

Reference no: EM132899016

Questions Cloud

Explain business communication modes : Explain Business communication Modes? Elaborate your answer with the help of suitable Diagram?
Discuss the changes to the optimal solution : -It has been said that each LP problem that has a feasible region has an infinite number of solutions. Explain why this is true.
What is imperialism : What is Imperialism? How many types are there? Is it always bad or immoral? Does one society or civilization have a right to impose itself
Outline licensing laws that might apply to operators : Outline licensing laws that might apply to operators in the travel, tourism and hospitality industries
What is the current 1-year forward price : The current price of soybean meal is $193.10 per ton. The current interest rate is 4.12% per year. The holder of soybean meal does not receive any direct cash p
Common biometric techniques : Some common biometric techniques
Calculate the npv of this investment opportunity : Superfast Bikes is thinking of developing a new composite road bike. The development will take six years and the cost is $213000 per year. Once in? production,
Commercial off the shelf software : What are issues to consider when deciding to build software in-house or purchase commercial off-the-shelf software (COTS)?
Describe a policy-protocol-rule-practice : Describe a policy, protocol, rule, practice, etc. that is featured on a public school campus that borders on being unethical towards teachers, students, parents

Reviews

Write a Review

Business Management Questions & Answers

  Appraise the viability of hybrid social ventures in ghana

Q 1. Appraise the viability of hybrid social ventures in Ghana? Q 2.i.  List the main characteristics of hybrid business models?  ii.    In literature (Hockerts, 2015), hybrid organizations are classified in three types, according to their field of a..

  Benefits and challenges of sending expatriates

Create a guide to leveraging expatriates. The guide should include four to six (4-6) sources that address benefits and challenges of sending expatriates to other countries

  Understanding the nature of reality

Describe the objectivist (positivist) and subjectivist (interpretivist) approaches to the understanding the nature of reality. include an example for each.

  Prevent businesses from engaging in fraud

Consumer protection laws are designed to prevent businesses from engaging in fraud or unfair practices, to protect individuals from scam artists, and identity thieves and crooks. - See more at: http://consumer.findlaw.com/#sthash.Wb8IMkVm.dpuf

  Adverse supply shock with non accommodative policy

During an adverse supply shock with non accommodative policy even though rates increases the rate of inflation does not?

  Discuss fully the principle of acquisitions management

Discuss fully the principle of Acquisitions Management. What is most important? What do you think will become more important over the next two decades?

  Analyze the impact of those events on the project

Analyze the impact of those events on the project.

  Discuss the characteristics of good risk indicators

Using practical examples, discuss the characteristics of good risk indicators.

  Organization mission and vision

What are the organization's mission and vision? What are the organization's key values? What strategic planning model does your chosen organization currently use?

  Piece of land with a bike path

Martin owns a piece of land with a bike path that runs along its western boundary.

  Labor-management relations

Discuss the significant laws passed since the Great Depression that affect labor-management relations. Explain. Explain the three categories of balance of payments transactions.

  Set of relationships between a company management

"Corporate governance involves a set of relationships between a company's management, its board, its shareholders and other stakeholders.

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