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a. Describe how Hans can fully hedge using futures contracts. b. Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne c. Describe how Hans can fully hedge using options. d. Given the strategy in (c), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne e. Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 20% chance his crop will be destroyed by hail before he has a chance to harvest it. iii. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. a. Determine how Hans can fully hedge using futures contracts. A. Hans can take a long position in futures on 3,000 tonnes of barley for delivery in October. B. Hans can take a short position in futures on 3,000 tonnes of barley for delivery in October. C. Hans can take an intermediate position in futures on 3,000 tonnes of barley for delivery in October. D. Hans can wait until prices rise in the future. b. Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne: the total net amount received by Hans is ii. $200 per tonne: the total net amount received by Hans is iii. $250 per tonne: the total net amount received by Hans is (Round your answers to the nearest dollar.) c. Determine how Hans can fully hedge using options. Describe how Hans can fully hedge using futures contracts. . Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne . Describe how Hans can fully hedge using options. . Given the strategy in (c), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne . Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 20% chance his crop will be destroyed by hail before he has a chance to harvest it. iii. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. Iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. In this case, Hans ii. Hans thinks there is a 25% c 'ed by hail before he has a chance to harvest it. In this case, Hans should use iii. Hans's farming business wi es in October do not cover his costs. He estimates his costs to will be $600,000. If his business goes bankrupt, Hans's bank wi and farm. In this case, Hans should use iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs to will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. In this case, Hans should use a. Describe how Hans can fully hedge using futures contracts. b. Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne c. Describe how Hans can fully hedge using options. d. Given the strategy in (c), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne e. Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 20% chance his crop will be destroyed by hail before he has a chance to harvest it. iii. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. i. Hans does not expect to have much cash available between May and September. In this case, Hans hedge. ii. Hans thinks ther crop will be destroyed by hail before he has a chance to harvest it. In this case, Hans : iii. Hans's farming I _pt if his net revenues in October do not cover his costs. He estimates his costs to will be $600,000. If his business goes bankrupt, Har and take his house and farm. In this case, Hans should use iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs to will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. In this case, Hans should use Describe how Hans can fully hedge using futures contracts. . Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne . Describe how Hans can fully hedge using options. . Given the strategy in (c), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne . Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 20% chance his crop will be destroyed by hail before he has a chance to harvest it. iii. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. Iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. In this case, Hans ii. Hans thinks there is a 25% c 'ed by hail before he has a chance to harvest it. In this case, Hans should use iii. Hans's farming business wi es in October do not cover his costs. He estimates his costs to will be $600,000. If his business goes bankrupt, Hans's bank wi and farm. In this case, Hans should use iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs to will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. In this case, Hans should use a. Describe how Hans can fully hedge using futures contracts. b. Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne cescribe how Hans can fully hedge using options. d. Given the strategy in (c), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne . Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 20% chance his crop will be destroyed by hail before he has a chance to harvest it. iii. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. i. Hans des not expect to have much cash available between May and September. In this case, Hans hedge. ii. Hans thinks there is a 25% chance his crop will be destroyed by hail before he has a chance to harvest it. In this case, Hans should use iii. Hans's farming business wi es in October do not cover his costs. He estimates his costs to will be $600,000. If his business goes bankrupt, Hans's bank wi 3 and farm. In this case, Hans should use iv. Hans's farming business wil es in October do not cover his costs. He estimates his costs to will be $800,000. If his business goes bankrupt, Hans's bank wi 3 and farm. Describe how Hans can fully hedge using futures contracts. . Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne a. Describe how Hans can fully hedge using options. d. Given the strategy in (c), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne . Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 20% chance his crop will be destroyed by hail before he has a chance to harvest it. iii. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business bankrupt, Hans's bank will foreclose and take his house and farm. iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. i. Hans does not expect to have much cash available between May and September. In this case, Hans hedge. ii. Hans thinks there is a 25% chance his crop will be destroyed by hail before he has a chance to harvest it. In this case, Hans should use iii. Hans's farming business wi es in October do not cover his costs. He estimates his costs to will be $600,000. If his business goes bankrupt, Hans's bank wi : and farm. In this case, Hans should use iv. Hans's farming business wil es in October do not cover his costs. He estimates his costs to will be $800,000. If his business goes bankrupt, Hans's bank wi : and farm. a. Describe how Hans can fully hedge using futures contracts. b. Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne c. Describe how Hans can fully hedge using options. d. Given the strategy in (c), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne e. Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 20% chance his crop will be destroyed by hail before he has a chance to harvest it. iii. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. a. Determine how Hans can fully hedge using futures contracts. A. Hans can take a long position in futures on 3,000 tonnes of barley for delivery in October. B. Hans can take a short position in futures on 3,000 tonnes of barley for delivery in October. C. Hans can take an intermediate position in futures on 3,000 tonnes of barley for delivery in October. D. Hans can wait until prices rise in the future. b. Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne: the total net amount received by Hans is ii. $200 per tonne: the total net amount received by Hans is iii. $250 per tonne: the total net amount received by Hans is (Round your answers to the nearest dollar.) c. Determine how Hans can fully hedge using options. Describe how Hans can fully hedge using futures contracts. . Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne . Describe how Hans can fully hedge using options. . Given the strategy in (c), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne . Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 20% chance his crop will be destroyed by hail before he has a chance to harvest it. iii. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. Iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. In this case, Hans ii. Hans thinks there is a 25% c 'ed by hail before he has a chance to harvest it. In this case, Hans should use iii. Hans's farming business wi es in October do not cover his costs. He estimates his costs to will be $600,000. If his business goes bankrupt, Hans's bank wi and farm. In this case, Hans should use iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs to will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. In this case, Hans should use a. Describe how Hans can fully hedge using futures contracts. b. Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne c. Describe how Hans can fully hedge using options. d. Given the strategy in (c), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne e. Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 20% chance his crop will be destroyed by hail before he has a chance to harvest it. iii. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. i. Hans does not expect to have much cash available between May and September. In this case, Hans hedge. ii. Hans thinks ther crop will be destroyed by hail before he has a chance to harvest it. In this case, Hans : iii. Hans's farming I _pt if his net revenues in October do not cover his costs. He estimates his costs to will be $600,000. If his business goes bankrupt, Har and take his house and farm. In this case, Hans should use iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs to will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. In this case, Hans should use Describe how Hans can fully hedge using futures contracts. . Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne . Describe how Hans can fully hedge using options. . Given the strategy in (c), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne . Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 20% chance his crop will be destroyed by hail before he has a chance to harvest it. iii. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. Iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. In this case, Hans ii. Hans thinks there is a 25% c 'ed by hail before he has a chance to harvest it. In this case, Hans should use iii. Hans's farming business wi es in October do not cover his costs. He estimates his costs to will be $600,000. If his business goes bankrupt, Hans's bank wi and farm. In this case, Hans should use iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs to will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. In this case, Hans should use a. Describe how Hans can fully hedge using futures contracts. b. Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne cescribe how Hans can fully hedge using options. d. Given the strategy in (c), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne . Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 20% chance his crop will be destroyed by hail before he has a chance to harvest it. iii. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. i. Hans des not expect to have much cash available between May and September. In this case, Hans hedge. ii. Hans thinks there is a 25% chance his crop will be destroyed by hail before he has a chance to harvest it. In this case, Hans should use iii. Hans's farming business wi es in October do not cover his costs. He estimates his costs to will be $600,000. If his business goes bankrupt, Hans's bank wi 3 and farm. In this case, Hans should use iv. Hans's farming business wil es in October do not cover his costs. He estimates his costs to will be $800,000. If his business goes bankrupt, Hans's bank wi 3 and farm. Describe how Hans can fully hedge using futures contracts. . Given the strategy in (a), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne a. Describe how Hans can fully hedge using options. d. Given the strategy in (c), what will be the total net amount received by Hans (for all 3,000 tonnes) if the price of barley in October is as follows: i. $150 per tonne; ii. $200 per tonne; iii. $250 per tonne . Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 20% chance his crop will be destroyed by hail before he has a chance to harvest it. iii. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business bankrupt, Hans's bank will foreclose and take his house and farm. iv. Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes bankrupt, Hans's bank will foreclose and take his house and farm. i. Hans does not expect to have much cash available between May and September. In this case, Hans hedge. ii. Hans thinks there is a 25% chance his crop will be destroyed by hail before he has a chance to harvest it. In this case, Hans should use iii. Hans's farming business wi es in October do not cover his costs. He estimates his costs to will be $600,000. If his business goes bankrupt, Hans's bank wi : and farm. In this case, Hans should use iv. Hans's farming business wil es in October do not cover his costs. He estimates his costs to will be $800,000. If his business goes bankrupt, Hans's bank wi : and farm