Question
On March 1 the spot price of a commodity is $20.00 and the July futures price is $18.75. On June 1 the spot price is
On March 1 the spot price of a commodity is $20.00 and the July futures price is $18.75. On June 1 the spot price is $24.10 and the July futures price is $23.50. A company entered into a futures contracts on March 1 to hedge the purchase of the commodity on June 1. It closed out its position on June 1. What is the effective price paid by the company for the commodity?
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Financial Planning & Analysis And Performance Management
Authors: Jack Alexander
1st Edition
1119491487, 9781119491484
