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Please help with page 2 questions. Thanks!! ABM 225 COMMODITY MARKETING I Fall 2018 Homework #1 Due: Friday 92118 Complete the table below and show
Please help with page 2 questions. Thanks!! ABM 225 COMMODITY MARKETING I Fall 2018 Homework #1 Due: Friday 92118 Complete the table below and show the expected return and actual return to hedging given the numbers below: (All numbers S/bu.) Answer questions on next page. October 15 July Futures $4.20 Cash Price $3.40 June 15 July Futures $4.40 Cash Price $4.25 Storage Cost: $0.04 per bushel per month Brokerage Cost: S0.02 per bushel Expected Basis on June 15 is: -$0.20 HEDGE TABLE CASH Operation S/bu. FUTURES BASIS S/bu. 30 E.B Date Operation S/bu. S/bu. Juni5 Sen 4.25-1 July bu.y .01-15 2b Gain (+) Or Loss t.85 Storage Costs 31 32 Net From Cash Market .02 Brokerage .22 Net From Futures 25 Net From Hedge 32 23 Net Price Received bl 3.11 Net Price Expected 3.lde ABM 225 COMMODITY MARKETING I Fall 2018 Homework #1 Due: Friday 92118 Complete the table below and show the expected return and actual return to hedging given the numbers below: (All numbers S/bu.) Answer questions on next page. October 15 July Futures $4.20 Cash Price $3.40 June 15 July Futures $4.40 Cash Price $4.25 Storage Cost: $0.04 per bushel per month Brokerage Cost: S0.02 per bushel Expected Basis on June 15 is: -$0.20 HEDGE TABLE CASH Operation S/bu. FUTURES BASIS S/bu. 30 E.B Date Operation S/bu. S/bu. Juni5 Sen 4.25-1 July bu.y .01-15 2b Gain (+) Or Loss t.85 Storage Costs 31 32 Net From Cash Market .02 Brokerage .22 Net From Futures 25 Net From Hedge 32 23 Net Price Received bl 3.11 Net Price Expected 3.lde
Please help with page 2 questions. Thanks!!
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