QUESTION 15 Nestles plans to purchase 750 metric tons of cocoa in three months and it fears that the price of cocoa will increase before they acquire the cocoa. The futures market information: New York Board of Trade has a cocoa futures contract that calls for 10 metric tons of cocoa. Cocoa futures price with three months to expiration is $2,140 per ton. Nestles decides to buy 75 3-month futures contracts to cover its 750 metric tons of cocoa. Suppose that there are three scenarios of cocoa's price at maturity day: $2,225, $2,140, and $2,016. Requirement 1: What is the payoff of the futures contracts to Nestles in each price scenario? (Do not round intermediate calculations. Use 1000 comma to separate your answers when a number is greater than one thousand. Round your answers to an integer. Put the negative sign- in the beginning place to express a negative number.) If the cocoa's price at maturity day is $2,225, then the payoff of the futures contracts to Nestles is $ If the cocoa's price at maturity day is $2,140, then the payoff of the futures contracts to Nestles is $ If the cocoa's price at maturity day is $2,016, then the payoff of the futures contracts to Nestles is $ Requirement 2: What is the cost of the cocoa to Nestles, not considering the futures contracts, in each price scenario? (Do not round intermediate calculations. Use 1000 comma to separate your answers when a number is greater than one thousand. Round your answers to an integer. Put the negative sign "_" in the beginning place to express a negative number.) If the cocoa's price at maturity day is $2,225, then the cost of the cocoa to Nestles, not considering the futures contracts, is $ If the cocoa's price at maturity day is $2,140, then the cost of the cocoa to Nestles, not considering the futures contracts, is $ If the cocoa's price at maturity day is $2,016, then the cost of the cocoa to Nestles, not considering the futures contracts, is $ Requirement 3: What is the cost of the cocoa, in total, for Nestles after buying the futures contract in each price scenario? (Do not round intermediate calculations. Use 1000 comma to separate your answers when a number is greater than one thousand. Round your answers to an integer. Put the negative sign "_" in the beginning place to express a negative number.) If the cocoa's price at maturity day is $2,225, then the cost of the cocoa plus the futures contracts to Nestles is $ If the cocoa's price at maturity day is $2,140, then the cost of the cocoa plus the futures contracts to Nestles is $ If the cocoa's price at maturity day is $2,016, then the cost of the cocoa plus the futures contracts to Nestles is $ QUESTION 15 Nestles plans to purchase 750 metric tons of cocoa in three months and it fears that the price of cocoa will increase before they acquire the cocoa. The futures market information: New York Board of Trade has a cocoa futures contract that calls for 10 metric tons of cocoa. Cocoa futures price with three months to expiration is $2,140 per ton. Nestles decides to buy 75 3-month futures contracts to cover its 750 metric tons of cocoa. Suppose that there are three scenarios of cocoa's price at maturity day: $2,225, $2,140, and $2,016. Requirement 1: What is the payoff of the futures contracts to Nestles in each price scenario? (Do not round intermediate calculations. Use 1000 comma to separate your answers when a number is greater than one thousand. Round your answers to an integer. Put the negative sign- in the beginning place to express a negative number.) If the cocoa's price at maturity day is $2,225, then the payoff of the futures contracts to Nestles is $ If the cocoa's price at maturity day is $2,140, then the payoff of the futures contracts to Nestles is $ If the cocoa's price at maturity day is $2,016, then the payoff of the futures contracts to Nestles is $ Requirement 2: What is the cost of the cocoa to Nestles, not considering the futures contracts, in each price scenario? (Do not round intermediate calculations. Use 1000 comma to separate your answers when a number is greater than one thousand. Round your answers to an integer. Put the negative sign "_" in the beginning place to express a negative number.) If the cocoa's price at maturity day is $2,225, then the cost of the cocoa to Nestles, not considering the futures contracts, is $ If the cocoa's price at maturity day is $2,140, then the cost of the cocoa to Nestles, not considering the futures contracts, is $ If the cocoa's price at maturity day is $2,016, then the cost of the cocoa to Nestles, not considering the futures contracts, is $ Requirement 3: What is the cost of the cocoa, in total, for Nestles after buying the futures contract in each price scenario? (Do not round intermediate calculations. Use 1000 comma to separate your answers when a number is greater than one thousand. Round your answers to an integer. Put the negative sign "_" in the beginning place to express a negative number.) If the cocoa's price at maturity day is $2,225, then the cost of the cocoa plus the futures contracts to Nestles is $ If the cocoa's price at maturity day is $2,140, then the cost of the cocoa plus the futures contracts to Nestles is $ If the cocoa's price at maturity day is $2,016, then the cost of the cocoa plus the futures contracts to Nestles is $
