15. You are a candy manufacturer, specializing in chocolate toffee (yum!). You have just received an order which requires the purchase of 130 tons of cocoa over six months. What was the total cost of delivery, assuming no hedge? Relevant contract specs for cocoa are: Spot Dec'20 Mar 21 May'21 Jul'21 Close Price/ton Number of Contract size Tic Size Tic Value Contracts US$2668 US$2641 US$2623 US$2611 US$2602 4 3 3 3 10 tons 10 tons 10 tons 10 tons $1/ton US$10.00 $1/ton US$10.00 $1/ton US$10.00 $1/ton US$10.00

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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15. You are a candy manufacturer, specializing in chocolate
toffee (yum!). You have just received an order which requires
the purchase of 130 tons of cocoa over six months. What was
the total cost of delivery, assuming no hedge? Relevant
contract specs for cocoa are:
Close Price/ton Number of Contract size Tic Size Tic Value
Contracts
Spot US$2668
Dec'20 US$2641
Mar'21 US$2623
May'21
US$2611
Jul 21
US$2602
4
3
3
3
10 tons
10 tons
10 tons
10 tons
$1/ton US$10.00
$1/ton US$10.00
$1/ton US$10.00
$1/ton US$10.00
Transcribed Image Text:15. You are a candy manufacturer, specializing in chocolate toffee (yum!). You have just received an order which requires the purchase of 130 tons of cocoa over six months. What was the total cost of delivery, assuming no hedge? Relevant contract specs for cocoa are: Close Price/ton Number of Contract size Tic Size Tic Value Contracts Spot US$2668 Dec'20 US$2641 Mar'21 US$2623 May'21 US$2611 Jul 21 US$2602 4 3 3 3 10 tons 10 tons 10 tons 10 tons $1/ton US$10.00 $1/ton US$10.00 $1/ton US$10.00 $1/ton US$10.00
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