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12. Eastmark Electrical Equpment Manufacturers needs to secure its supply of copper for the next year. The price of copper is extremely volatile becouze of

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12. Eastmark Electrical Equpment Manufacturers needs to secure its supply of copper for the next year. The price of copper is extremely volatile becouze of huge month-to-month variation in demand. Eastmark wants to break even with a hedgo against future copper prices. Currently, the market price for copper is reasonably low at $2.50 per pound or $250 (CWT Eastmark has entered into a contract with the supplior for 600,000 pounds of copper per month starting in January at market prices. Eastmark has also entered into ? futures contract with a financial institution for 600.000 pounds per month at 5250 per pound. CWT (hundredweight) is equal to 100 pounds in the United States. Suppose the funures contact is sta in force in Fobruary. a. However, assume the irm has just lost a key clients business and only purchases 500,000 pounds of copper i Calculate the one month inancial and the physical results if the market price of copper has risen to $3.75 per pound. Calculate only the tinancial impact of copper transactions and disregard the loss of revenue due to business loss The fnancial result is $ Enter your response as a whole number and inlude aminus sign ifnecessary) The physical resul is S Enker your response as a whole number and include a minus sign if necessary.) i. Calculate the one month financial and the physical resuits if the market price of copper, instead, has falen to $150 per pound. Calcuate only the financial impact of copper transactions and disregard the loss of revenue due to business losS The fnancial result is $ Enter your response as a whole number and include a minus sign ifnecessary.) The physical resut is S Enter your response as a whole number and inciude a minus sign if necessary) b. Now assume the frm has just roccivod ? now diant's business and must purchase 700,000 pounds of oopper. i Calculate the one month inancial and the physical results if the market price of copper has risen to $3.75 per pound. Calculate only the tinancial impact of copper transactions and disregard the loss of revenue due to business loss Enter your response as a whole number and inlude aminus sign ifnecessary) The fnancial result is $ The physical resut is $ Eter your response as a whole number and include a minus sign if necessary) i. Calculate the one month financial and the physical resuits if the market price of copper, instead, has falen to $150 per pound. Calcuate only the financial impact of copper transactions and disregard the loss of revenue due to business losS The fnancial result is $ Enter your response as a whole number and include a minus sign ifnecessary.) The physical result is $ Enter your response as a whole number and inciude a minus sign if necessary) 12. Eastmark Electrical Equpment Manufacturers needs to secure its supply of copper for the next year. The price of copper is extremely volatile becouze of huge month-to-month variation in demand. Eastmark wants to break even with a hedgo against future copper prices. Currently, the market price for copper is reasonably low at $2.50 per pound or $250 (CWT Eastmark has entered into a contract with the supplior for 600,000 pounds of copper per month starting in January at market prices. Eastmark has also entered into ? futures contract with a financial institution for 600.000 pounds per month at 5250 per pound. CWT (hundredweight) is equal to 100 pounds in the United States. Suppose the funures contact is sta in force in Fobruary. a. However, assume the irm has just lost a key clients business and only purchases 500,000 pounds of copper i Calculate the one month inancial and the physical results if the market price of copper has risen to $3.75 per pound. Calculate only the tinancial impact of copper transactions and disregard the loss of revenue due to business loss The fnancial result is $ Enter your response as a whole number and inlude aminus sign ifnecessary) The physical resul is S Enker your response as a whole number and include a minus sign if necessary.) i. Calculate the one month financial and the physical resuits if the market price of copper, instead, has falen to $150 per pound. Calcuate only the financial impact of copper transactions and disregard the loss of revenue due to business losS The fnancial result is $ Enter your response as a whole number and include a minus sign ifnecessary.) The physical resut is S Enter your response as a whole number and inciude a minus sign if necessary) b. Now assume the frm has just roccivod ? now diant's business and must purchase 700,000 pounds of oopper. i Calculate the one month inancial and the physical results if the market price of copper has risen to $3.75 per pound. Calculate only the tinancial impact of copper transactions and disregard the loss of revenue due to business loss Enter your response as a whole number and inlude aminus sign ifnecessary) The fnancial result is $ The physical resut is $ Eter your response as a whole number and include a minus sign if necessary) i. Calculate the one month financial and the physical resuits if the market price of copper, instead, has falen to $150 per pound. Calcuate only the financial impact of copper transactions and disregard the loss of revenue due to business losS The fnancial result is $ Enter your response as a whole number and include a minus sign ifnecessary.) The physical result is $ Enter your response as a whole number and inciude a minus sign if necessary)

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