Business, 02.04.2020 21:02 jorell

Cranked Coffee Company's cost of producing copper is about $3.95 per pound. The current market price for copper is $4.74 per pound. The six-month futures price for copper is $4.94 per pound. At this selling price, the company can maintain its earnings growth. The company expects to produce 1,250,000 pounds of copper in this six months. (Note: Copper futures are traded at a standard size of 250,000 pounds.) Cranked Coffee places a hedge on its copper production in the futures market. When the contract comes due in six months, the spot price of copper is $3.36 per pound in the cash markets. Prices on the new six-month futures contracts in copper are $4.20 per pound. The net gain or loss in the futures market is:a. $0b. $5,250,000c. -$737,500d. $1,975,000e. -$6,175,000

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 05:00

What is free trade? a. trade that is not subject to taxes or fees b. trade that governments do not interfere with c. trade with a high level of government regulation d. trade between states in the u.s. b

Answers: 1

Answer

Business, 22.06.2019 19:40

Adistinguishing feature of ecological economics is the concept of cost-benefit analysis steady-state economies that, like natural systems, neither grow nor shrink environmental damage and also environmental benefits are external greenwashing to increase public acceptance of products the only healthy economy is one that is growing

Answers: 1

Answer

Business, 22.06.2019 21:20

Suppose life expectancy in years (l) is a function of two inputs, health expenditures (h) and nutrition expenditures (n) in hundreds of dollars per year. the production function is upper l equals ch superscript 0.40 baseline upper n superscript 0.60l=ch0.40n0.60. beginning with c = 1, a health input of $400400 per year (hequals=44) and a nutrition input of $400400 per year (nequals=44), show that the marginal product of health expenditures and the marginal product of nutrition expenditures are both decreasing. the marginal product of health expenditures when h goes from 44 to 55 is nothing, and the marginal product of health when h goes from 66 to 77 is nothing. (round your answers to three decimal places.)

Answers: 2

Answer

Business, 22.06.2019 23:00

Abeverage company puts game pieces under the caps of its drinks and claims that one in six game pieces wins a prize. the official rules of the contest state that the odds of winning a prize are is the claim "one in six game pieces wins a prize" correct? why or why not? 1: 6.

Answers: 1

Answer

You know the right answer?

Cranked Coffee Company's cost of producing copper is about $3.95 per pound. The current market price...

Questions