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Royal Dutch Shell(RDS) acquires ethanol fuel from Brazilian Cosan energy company. The Ethanol costs 32 million Brazilian Real(BRL) to grow the corn and convert it

Royal Dutch Shell(RDS) acquires ethanol fuel from Brazilian Cosan energy company. The Ethanol costs 32 million Brazilian Real(BRL) to grow the corn and convert it to ethanol. RDS doesn't have BRL, so they must use the futures market to acquire the currency.

If 1 BRL/USD futures contract is for 100,000 reals

  • What is the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery.A.320 futures contracts
  • B.the answer is not here
  • C.6,000 futures contracts
  • D.2,000 futures contracts

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