1 / 7

Quiz #3.

Quiz #3. Name and SSN on scan sheets Questions 1-4: calculate the net price as a result of hedging. 1. Long Hedge. Feb. 4 : You plan to buy feeder cattle in May. May futures @ $82.50, Exp. basis is -$1.50 May : Local price is $78.00. May futures @ $78.50 Realized net price paid is:

zelda
Download Presentation

Quiz #3.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Quiz #3. • Name and SSN on scan sheets • Questions 1-4: • calculate the net price as a result of hedging

  2. 1. Long Hedge Feb. 4: You plan to buy feeder cattle in May. May futures @ $82.50, Exp. basis is -$1.50 May: Local price is $78.00. May futures @ $78.50 Realized net price paid is: • $79.50 • $81.00 • None of the above

  3. 2. Long Hedge Feb 4: Elevator needs to buy wheat by July. July futures @ $3.50/bu., Exp. basis is -$0.40 June: Local price is $4.50. July futures @ $5.10 Realized net price paid is: • $3.30 • $2.90 • None of the above

  4. 3. Short Hedge. Feb. 4: Plan to sell 40 fed cattle in June June futures @ $68.00/cwt., Exp. basis is +$1.00. June: Local price is $64.50, June futures @ $65.00 Realized net price received is: • $68.50 • $65.50 • None of the above

  5. 4. Short Hedge. Feb. 4: Plan to sell 5000 bu. wheat in July July futures @ $3.00/bu., Exp. basis is -$0.40. July: Local price is $3.70, July futures @ $4.00 Realized net price received is: • $3.40 • $3.75 • $2.70 • $3.00 • None of the above

  6. 5 • The minimum price change on a cattle futures contract is: a. 2 cents per cwt b. 2½ cents per cwt c. 1 cent per cwt d. $1 per cwt • none of the above

  7. For Quiz #4 Gaelic football

More Related