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A-Corp can supply 50,000 metric tons (MT) of crude palm oil (CPO) to L-Brothers on 15 th March 2021. The current CPO price is $3400
A-Corp can supply 50,000 metric tons (MT) of crude palm oil (CPO) to L-Brothers on 15th March 2021. The current CPO price is $3400 per MT. It is expected that the CPO could be trading at $2700 per MT on 15th March 2021. The FCPO (CPO Futures) is currently trading at $3450 per MT. Each FCPO contract is 25 MTs. If the FCPO is trading at $2100 per MT on 15th March 2021, calculate the net sales revenue of A-Corp in this supply transaction if it decides to hedge by using FCPO contracts
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