5) What is the value (i.e. amount) of the profit/loss on the hedge on a per unit basis (signs matter)? 6) What is the hedged price per ton on this transaction? 7) If the individual didn't hedge, what would have been the price paid/received for the cash commodity on a per unit basis? 3) The individual made the right decision to hedge: Yes or No. 9) What is the net selling (or purchase) price on a per unit basis? The following questions use the table below about hog farmer needing soybean meal. One contract is for 100 short tons. Now Later $290.00/ton $290.50/ton Cash Soybean Мeal Market Futures $279.00/ton $279.50/ton Soybean Мeal Market
5) What is the value (i.e. amount) of the profit/loss on the hedge on a per unit basis (signs matter)? 6) What is the hedged price per ton on this transaction? 7) If the individual didn't hedge, what would have been the price paid/received for the cash commodity on a per unit basis? 3) The individual made the right decision to hedge: Yes or No. 9) What is the net selling (or purchase) price on a per unit basis? The following questions use the table below about hog farmer needing soybean meal. One contract is for 100 short tons. Now Later $290.00/ton $290.50/ton Cash Soybean Мeal Market Futures $279.00/ton $279.50/ton Soybean Мeal Market
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
Section: Chapter Questions
Problem 1PS
Related questions
Question
please answer in 30 mins. Do not answer if not sure.
![5) What is the value (i.e. amount) of the profit/loss
on the hedge on a per unit basis (signs matter)?
6) What is the hedged price per ton on this
transaction?
7) If the individual didn't hedge, what would have
been the price paid/received for the cash
commodity on a per unit basis?
8) The individual made the right decision to hedge:
Yes or No.
9) What is the net selling (or purchase) price on a
per unit basis?
The following questions use the table below about a
hog farmer needing soybean meal. One contract is
for 100 short tons.
Now
Later
$290.00/ton
$290.50/ton
Cash
Soybean
Meal
Market
Futures $279.00/ton $279.50/ton
Soybean
Meal
Market](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F65152592-d309-458a-9042-3624e4aecf53%2F38813e6a-1589-44ee-a958-f91a12762b4a%2Fzxci60c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5) What is the value (i.e. amount) of the profit/loss
on the hedge on a per unit basis (signs matter)?
6) What is the hedged price per ton on this
transaction?
7) If the individual didn't hedge, what would have
been the price paid/received for the cash
commodity on a per unit basis?
8) The individual made the right decision to hedge:
Yes or No.
9) What is the net selling (or purchase) price on a
per unit basis?
The following questions use the table below about a
hog farmer needing soybean meal. One contract is
for 100 short tons.
Now
Later
$290.00/ton
$290.50/ton
Cash
Soybean
Meal
Market
Futures $279.00/ton $279.50/ton
Soybean
Meal
Market
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