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Please help me calculate and understand the boxes!! Thank you! Will give like! Note: each shaded box is worth 1.5 points, please pay attention to
Please help me calculate and understand the boxes!! Thank you! Will give like!
Note: each shaded box is worth 1.5 points, please pay attention to each number given. HEDGE TABLE 10/15/2021 Cash Futures JUL Corn 7/15/2022 Cash Futures JUL $4.40 $5.10 $0.03 Storage Cost per bushel per $6.15 $6.24 9 Months Cost Brokerage $0.01 E.B -$0.20 CASH BASIS FUTURES Operation E.B. $/bu. Date Operation $/bu. $/bu. $/bu. Gain (+) or Loss (-) Storage Costs Net From Cash Market Brokerage Net From Futures Net From Hedge Net Price Recived Net Price Expected Each problem is worth 2 points 1. Given your calculated expected net from hedge, would you hedge? (circle answer) Yes No 2. Did the net from hedge come out MORE or LESS favorable than expected? (circle) 3. If the expected basis were $0.42 (versus - $0.20) what would the expected net from hedge be Note: each shaded box is worth 1.5 points, please pay attention to each number given. HEDGE TABLE 10/15/2021 Cash Futures JUL Corn 7/15/2022 Cash Futures JUL $4.40 $5.10 $0.03 Storage Cost per bushel per $6.15 $6.24 9 Months Cost Brokerage $0.01 E.B -$0.20 CASH BASIS FUTURES Operation E.B. $/bu. Date Operation $/bu. $/bu. $/bu. Gain (+) or Loss (-) Storage Costs Net From Cash Market Brokerage Net From Futures Net From Hedge Net Price Recived Net Price Expected Each problem is worth 2 points 1. Given your calculated expected net from hedge, would you hedge? (circle answer) Yes No 2. Did the net from hedge come out MORE or LESS favorable than expected? (circle) 3. If the expected basis were $0.42 (versus - $0.20) what would the expected net from hedge beStep by Step Solution
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