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Assume that the same EPC contractor needs to purchase [ First three non - zero digits of Your ID ] tons of copper for the

Assume that the same EPC contractor needs to purchase [First three non-zero digits of Your ID] tons of copper for the project. Your supervisor is curious about hedging and asks you to create examples to explain the concept of material hedging. Use any suitable time periods from the chart given below and corresponding tentative copper prices to explain when the contractor would benefit from hedging and when would lose from hedging. You may have to use two different time periods to explain the situations. Mark the dates you have used on the chart. Calculate all the transactions occurring between the parties for both situations. [6]
Your ID: ,000812796
Quantity of copper =[First three non-zero digits of your ID] tons =
812
tons
\table[[Date(s) you've used in your calculation,Rate of copper from the chart (tentative)],[,],[,],[,]]
LME Copper Official Prices graph
Bid Offer
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