A
Interpretation: Supposing that the market price of copper has increased to $4.50 per pound, the 1-month financial and physical results are to be calculated.
Concept Introduction: Since the price of Copper is extremely volatile, the company desires to attain a hedging position that could offset with each other while the price changes.
B
Interpretation: Supposing that the market price of copper has fallen to $3.00 per pound, the 1 month financial and physical results are to be calculated.
Concept Introduction: Since the price of Copper is extremely volatile, the company desires to attain a hedging position that could offset with each other while the price changes.
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