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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 nonzero 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.
Your ID:
Quantity of copper First three nonzero digits of your ID tons
tons
tableDates you've used in your calculation,Rate of copper from the chart tentative
LME Copper Official Prices graph
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