What is your effective purchase price for corn

Assignment Help Finance Basics

Reference no: EM13258942

Suppose it is May 23 and you expect to have purchase 32000 bushels of corn in December. You like the December corm futures price on May 23rd which is 624'0. What position do you take? How many December contracts will you open? Are you completely hedging your position and why? If you are completely hedged are you speculating in corn and why? If the spot price of corn settles at $6.50/bushel in December, what is your effective purchase price for corn?

Reference no: EM13258942

Questions Cloud

What is the main point of the article : What is the main point of the article and how does the author support his point of view?

Find the initial potential difference across the inductor : An inductor with an inductance of 2.90H and a resistor with a resistance of 6.00? are connected to the terminals of a battery with an emf of 4.00V, Find the initial potential difference across the inductor

Recorded at the time of purchase : what is the cost of the truck that should be recorded at the time of purchase?

Why did reconstruction end : Why did Reconstruction end? Answer Black issues became secondary to other national priorities and interests. Financial panic and economic hard times distracted northerners.

What is your effective purchase price for corn : If the spot price of corn settles at $6.50/bushel in December, what is your effective purchase price for corn?

What is the rms value of the largest sine-wave input : An amplifier with 40 dB of small-signal open-circuit voltagegain, an input resistance of 1M-ohm ,and an output resistance10-ohm drives a load of 100-ohm .What voltage and power gains(expressed in dB) would you expect with the load connected

Compute the final volume and temperature : A sample of 1.0 mole of a perfect gas with cp= 20.8 J K-1 is initially at 3.25 atm and 310K. If it undergoes reversible adiabatic expansion until its pressure reaches 2.50 atm. Calculate the final volume and temperature and the work done.

The difference between the facts of a situation : This statement from a fellow student it just needs a replied to. There are many ways to ensure your personal perceptions are accurate.

The costs of the civil war : Radical Republicans created their own plan for Reconstruction, including Answer helping freedpeople make the transition to full freedom. imprisoning rebel leaders.

User Account

All Pages