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Use the information provided below: Dare Spot price Mar 2018 futures price Sept. 2018 futures price Mar 2019 futures price Sept. 2019 futures price Oct.

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Use the information provided below: Dare Spot price Mar 2018 futures price Sept. 2018 futures price Mar 2019 futures price Sept. 2019 futures price Oct. 2017 Fich 2018 Aug. 2018 Feb 2019 Mat. 2019 372.00 369.00 365,00 377.00 388.00 37230 369.10 372.80 370.30 364.80 370,70 364 30 376,70 16420 376.50 388 20 It is currently August 2018 and you are interested in hedging the one- time sale of 1 million pounds of copper in Feb 2019. Assume you hedge the entire 1 million pound sale. 1) What position would you take (be specific)? Detail the specific actions you will take from today (August 2018 thru the sale of the copper) 2) Does the basis strengthen or weaken during the life of the hedge (show calculations)? Does this hurt or help your position? Explain. 3) What is the realised sales price per pound of copper? Show in terms of the spot price and the gain/loss on the futures position. Use the information provided below: Dare Spot price Mar 2018 futures price Sept. 2018 futures price Mar 2019 futures price Sept. 2019 futures price Oct. 2017 Fich 2018 Aug. 2018 Feb 2019 Mat. 2019 372.00 369.00 365,00 377.00 388.00 37230 369.10 372.80 370.30 364.80 370,70 364 30 376,70 16420 376.50 388 20 It is currently August 2018 and you are interested in hedging the one- time sale of 1 million pounds of copper in Feb 2019. Assume you hedge the entire 1 million pound sale. 1) What position would you take (be specific)? Detail the specific actions you will take from today (August 2018 thru the sale of the copper) 2) Does the basis strengthen or weaken during the life of the hedge (show calculations)? Does this hurt or help your position? Explain. 3) What is the realised sales price per pound of copper? Show in terms of the spot price and the gain/loss on the futures position

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