Solved Assignments Farmer Tom Hedges anticipates taking 100,000 bushels of oats to the market in three months. The cur

  

This Assignment has been Solved

Farmer Tom Hedges anticipates taking 100,000 bushels of oats to the market in three months. The current cash price for oats is $2.15. He can sell a three- month futures contract for oats at $2.20. He decides to sell 10 5,000-bushel futures contracts at that price. Assume that in three months when Farmer Hedges takes the oats to market and also closes out the futures contracts (buys them back), the price of oats has tumbled to $2.03a.What is his total loss in value over the three months on the actual oats he produced and took to market?b.How much did his hedge in the futures market generate in gains?c.What is the overall net loss considering the answer in part a and the partialhedge in part b

For over 13 years, we have offered unmatched academic services to students. While at it, we have developed a culture that allows us to keep our clients first. Also, the experience and skillset acquired over the years have refined us and consequently, led to the delivery of the best Academic products. Your Success is our Pride.

How we have managed to stay on Top :

1. Our Qualified Writers and Tutors: Our success is mainly because of our writers and tutors who endeavor to see that all papers are done excellently.

2. Papers of Top Quality: We guarantee top quality papers by employing unique research methods.

3. 100% Product Originality: Originality is the core pillar of our business. We use software and human intellect to check for originality and errors.

4. Timely Delivery: We commit to delivering all assignments within the stipulated timeframe. As such, resources are committed to an assignment depending on the delivery schedule.

5. Pricing: Our price ranges are custom developed to cater for all students. Additionally, we have amazing Discounts.

6. 24/7 Customer Care: We are available through-out to answer and serve our clients.

(it’s simple and quick)

  

Leave a Comment

Your email address will not be published.