You hedge your cattle by selling and then offsetting three futures contracts. The price you received was $3.50/cwt above the cash price. Your broker charged you a commission of $325. What is your net gain over the cash price?
You hedge your cattle by selling and then offsetting three futures contracts. The price you received was $3.50/cwt above the cash price. Your broker charged you a commission of $325. What is your net gain over the cash price?
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
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Transcribed Image Text:You hedge your cattle by selling and then offsetting three futures contracts.
The price you received was $3.50/cwt above the cash price. Your broker
charged you a commission of $325. What is your net gain over the cash
price?
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