Question 1 a) Discuss five roles of warehousing in commodity trade. 10 marks b) Explain any two functions of Warchouse receipts (WRs) 2 marks c) You are the manager of XYZ warehouse. You receive a packing order for 400 cases of item #103. The case dimensions for this item are 12"L x 15"W x 10 H. The maximum case stacking height for this product is 8 cases. What is the total number of cases you can fit on one layer of a 48" x 40"pallet? 3 marks If you stack the cases 8 high, how many total cases can you load on one pallet? 3 marks How many pallets will you need for this order in the warehouse? 2 marks i. Question two a) Discuss what commodity finance is and indicate how it is different from traditional b) Discuss four funding structures used by banks to facilitate trade across the commodity value chain 15 marks finance S marks Question three a) What are commodity derivatives? b) Identify and discuss four key roles of derivatives in commodities trade 2 marks 12 marks Abdulallddrisu c) A factory uses 1000 barrels per year and faces the volatility of spot prices in the open market. The factory wants to bring some stability for better planning. The factory enters into a swap contract by agreeing to buy crude oil at 80/barrel at 4000 barrels for the next few years. This transaction is based on a financial settlement so the factory receives or pay the differences between the spot price and the swap contract. What happens if the spot price: i rises to 100/barrel ii. reduces to 60/barrel 5 marks Question four a) Discuss the concept of commodity risk in commodities trade 5 marks b) Discuss four types of commodity risk. 8 mark c) What are the effects of commodity price fluctuations to both the producer and the consumers of commodities 7 marks Question five Give a detailed description of Ghana's commodity market 20 marks Question 1 a) Discuss five roles of warehousing in commodity trade. 10 marks b) Explain any two functions of Warchouse receipts (WRs) 2 marks c) You are the manager of XYZ warehouse. You receive a packing order for 400 cases of item #103. The case dimensions for this item are 12"L x 15"W x 10 H. The maximum case stacking height for this product is 8 cases. What is the total number of cases you can fit on one layer of a 48" x 40"pallet? 3 marks If you stack the cases 8 high, how many total cases can you load on one pallet? 3 marks How many pallets will you need for this order in the warehouse? 2 marks i. Question two a) Discuss what commodity finance is and indicate how it is different from traditional b) Discuss four funding structures used by banks to facilitate trade across the commodity value chain 15 marks finance S marks Question three a) What are commodity derivatives? b) Identify and discuss four key roles of derivatives in commodities trade 2 marks 12 marks Abdulallddrisu c) A factory uses 1000 barrels per year and faces the volatility of spot prices in the open market. The factory wants to bring some stability for better planning. The factory enters into a swap contract by agreeing to buy crude oil at 80/barrel at 4000 barrels for the next few years. This transaction is based on a financial settlement so the factory receives or pay the differences between the spot price and the swap contract. What happens if the spot price: i rises to 100/barrel ii. reduces to 60/barrel 5 marks Question four a) Discuss the concept of commodity risk in commodities trade 5 marks b) Discuss four types of commodity risk. 8 mark c) What are the effects of commodity price fluctuations to both the producer and the consumers of commodities 7 marks Question five Give a detailed description of Ghana's commodity market 20 marks
