Question
On February 1 the price of a commodity is $560 and the November futures price is $569. On September 1 the price is $552 and
On February 1 the price of a commodity is $560 and the November futures price is $569. On September 1 the price is $552 and the November futures price is $555. A producer of the commodity entered into a November futures contracts on February 1 to hedge the sale of the commodity on September 1. It closed out its position on September 1. What is the effective price (after taking account of hedging) received by the company for the commodity?
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Financial Performance
Authors: Marc Bertoneche, Rory Knight
1st Edition
0750640111, 978-0750640114
