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Posted on Sep 30, 2024

uce the CCC Me NO NAME MONTH OPEN BID ASK LAST DONE CHANGE HIGH LOW VOL OI SETT. PRICE 1 FCPO Jul 2021 3,510.00 3,506.00

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uce the CCC Me NO NAME MONTH OPEN BID ASK LAST DONE CHANGE HIGH LOW VOL OI SETT. PRICE 1 FCPO Jul 2021 3,510.00 3,506.00 3,510.00 3,505.00 -61.00 3,573.00 3,490.00 1,028 15,492 3,566.00 2 FCPO Aug 2021 3,405.00 3,411.00 3,416.00 3,415.00 -49.00 3,498.00 3,389.00 5,747 35.760 3,464.00 3 FCPO Sep 2021 3,333.00 3,356.00 3,357.00 3,356.00 -48.00 3,452.00 3,327.00 28,517 69.068 3,404.00 4 FCPO Oct 2021 3,315.00 3,333.00 3,335.00 3,334.00 -53.00 3,431.00 3,310.00 10,148 29.116 3,387.00 5 FCPO Nov 2021 3,322.00 3,324.00 3,327.00 3,325.00 -59.00 3,414.00 3,311.00 5,851 26.809 3,384.00 6 FCPO Dec 2021 3,314.00 3,321.00 3,323.00 3,330.00 -49.00 3,403.00 3,314.00 2,460 17.023 3,379.00 7 FCPO Jan 2022 3,330.00 3,321.00 3,323.00 3,330.00 - 47.00 3,399.00 3,330.00 1,222 9.055 3,377.00 FCPO Feb 2022 3,330.00 3,320.00 3,323.00 3,334.00 -46.00 3,395.00 3,330.00 679 7.682 3,380.00 9 FCPO Mar 2022 3,326.00 3,314.00 3,318.00 3,315.00 -55.00 3,385.00 3,315.00 558 8.379 3,370.00 10 AFCPO Apr 2022 3,344.00 3,303.00 3,311.00 3,376.00 +16.00 3,376.00 3,344.00 209 1.615 3,360.00 11 FCPO May 2022 3,352.00 3,297.00 3,305.00 3,315.00 -36.00 3,356.00 3,315.00 225 5.584 3,351.00 12 AFCPO Jun 2022 3,332.00 3,283.00 3,303.00 3,334.00 +5.00 3,334.00 3,332.00 7 27 3,329.00 13 FCPO Jul 2022 3,333.00 3,280.00 3,298.00 3,300.00 -7.00 3,335.00 3,300.00 55 2.127 3,307.00 a. Analyse the price of the Future Crude Palm Oil (FCPO) and conclude the trend of the market prices for the next six months. How do you relate to what you observed in the prices and the function of derivatives? (6 marks) b. If a Crude Palm Oil Producer sells CPO futures, is that hedging or speculating? Support your answers with the primary motives for a hedger and a speculator in the derivatives market. (6 marks) c. Illustrate how a manufacturer who has an ongoing need for Crude Palm Oil as a raw material in the production process might use futures to hedge. What does the manufacturer hope to gain? (7 marks) d. Discuss why speculators of Crude Palm Oil have the riskiest position as compared to spreaders and arbitrageurs? (6 marks) uce the CCC Me NO NAME MONTH OPEN BID ASK LAST DONE CHANGE HIGH LOW VOL OI SETT. PRICE 1 FCPO Jul 2021 3,510.00 3,506.00 3,510.00 3,505.00 -61.00 3,573.00 3,490.00 1,028 15,492 3,566.00 2 FCPO Aug 2021 3,405.00 3,411.00 3,416.00 3,415.00 -49.00 3,498.00 3,389.00 5,747 35.760 3,464.00 3 FCPO Sep 2021 3,333.00 3,356.00 3,357.00 3,356.00 -48.00 3,452.00 3,327.00 28,517 69.068 3,404.00 4 FCPO Oct 2021 3,315.00 3,333.00 3,335.00 3,334.00 -53.00 3,431.00 3,310.00 10,148 29.116 3,387.00 5 FCPO Nov 2021 3,322.00 3,324.00 3,327.00 3,325.00 -59.00 3,414.00 3,311.00 5,851 26.809 3,384.00 6 FCPO Dec 2021 3,314.00 3,321.00 3,323.00 3,330.00 -49.00 3,403.00 3,314.00 2,460 17.023 3,379.00 7 FCPO Jan 2022 3,330.00 3,321.00 3,323.00 3,330.00 - 47.00 3,399.00 3,330.00 1,222 9.055 3,377.00 FCPO Feb 2022 3,330.00 3,320.00 3,323.00 3,334.00 -46.00 3,395.00 3,330.00 679 7.682 3,380.00 9 FCPO Mar 2022 3,326.00 3,314.00 3,318.00 3,315.00 -55.00 3,385.00 3,315.00 558 8.379 3,370.00 10 AFCPO Apr 2022 3,344.00 3,303.00 3,311.00 3,376.00 +16.00 3,376.00 3,344.00 209 1.615 3,360.00 11 FCPO May 2022 3,352.00 3,297.00 3,305.00 3,315.00 -36.00 3,356.00 3,315.00 225 5.584 3,351.00 12 AFCPO Jun 2022 3,332.00 3,283.00 3,303.00 3,334.00 +5.00 3,334.00 3,332.00 7 27 3,329.00 13 FCPO Jul 2022 3,333.00 3,280.00 3,298.00 3,300.00 -7.00 3,335.00 3,300.00 55 2.127 3,307.00 a. Analyse the price of the Future Crude Palm Oil (FCPO) and conclude the trend of the market prices for the next six months. How do you relate to what you observed in the prices and the function of derivatives? (6 marks) b. If a Crude Palm Oil Producer sells CPO futures, is that hedging or speculating? Support your answers with the primary motives for a hedger and a speculator in the derivatives market. (6 marks) c. Illustrate how a manufacturer who has an ongoing need for Crude Palm Oil as a raw material in the production process might use futures to hedge. What does the manufacturer hope to gain? (7 marks) d. Discuss why speculators of Crude Palm Oil have the riskiest position as compared to spreaders and arbitrageurs? (6 marks)