Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 06, 2024

your company is a copper producer, and you just signed a contract to sell 1 million pounds of copper for the market price in December

your company is a copper producer, and you just signed a contract to sell 1 million pounds of copper for the market price in December of this year. You enter a short position on 40 December futures contracts (copper futures contracts are 25000 pounds) at a price of $2.67 per pound.

What happens if copper is $4.50 per pound on the day of sale?

what happens if it is $1.50?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

Discuss the influence of the financial crisis on the risk-taking behavior of investors.

Answered: 1 week ago

Question

★★★★★

Christine Carpet manufactures broadloom carpet in seven processes: spinning, dyeing, plying, spooling, tufting, latexing, and shearing. In the Dyeing Department, direct materials (dye) are added at...

Answered: 1 week ago

Question

★★★★★

Requirements analysis and system design User stories and product backlog Overall system architecture System design such as UML diagrams, database design, etc.

Answered: 1 week ago

Question

★★★★★

1. Which of the following is an example of a long-term liability? a. Current portion of real estate mortgage b. Accrued expenses c. Owners' equity d. Real estate mortgage e. Accounts payable

Answered: 1 week ago

Question

★★★★★

Suppose that L is a location function of an object, given as L(t) instantaneous velocity of the object at t First we compute and simplify L(5+ h). L(5+ h) = = 2t 1. We will compute the 5 as follows....

Answered: 1 week ago

Question

★★★★★

Use the following account balances from the adjusted trial balance of Flora Wholesalers: Account Debit Balance Credit Balance Cash $ 4,200 Accounts receivable $ 300 Accounts payable $ 1,100 H. Jones,...

Answered: 1 week ago

Question

★★★★★

A physician hopes to advocate for a new medical records system that he believes will save his department money. He has a good idea of the money that can be saved each year, and has received several...

Answered: 1 week ago

Question

★★★★★

Provide a Situation Analysis: Review the current situation facing Suez Canal and develop in detail the PESTLE Analysis looking at the Strengths, Weaknesses, Opportunity, and Threats (SWOT) analysis,...

Answered: 1 week ago

Question

★★★★★

5.29 The fighter aircraft F/A-18 (Hornet) has a takeoff mass of 25,400 kg, a wing area of 37.16 m, and two turbofan engines that each produces 71.2 kN of thrust. If AR = 3.5, e = 0.85, CD, = 0.02 a....

Answered: 1 week ago

Previous Question Next Question