A 6-month forward contract for corn exists with a price of $1.70 per bushel. If Farmer Jayne decides to hedge her 20,000 bushels of corn with the forward contract,
what is her profit or loss if spot prices are $1.65 or $1.80 when she sells her crop in 6 months? Her total costs are $33,000.
A) $1,000 gain or $1,000 loss
B) $0 gain or $3,000 gain
C) $0 loss or $3,000 loss
D) $1,000 gain or $1,000 gain
D
You might also like to view...
To make the election to split gifts, spouses must file a Form 709 (Federal gift tax return).
Answer the following statement true (T) or false (F)
According to management recruiters, ______ demonstrates independence, resourcefulness, and entrepreneurship to potential employers.
A. importing goods from another country B. foreign work experience C. holding school leadership positions D. speaking a second language E. studying the fine arts
According to brand asset valuator model, declining brands show ________
A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still B) high relevance—appropriateness of brand's appeal—a lower level of energy and differentiation, and even lower knowledge C) high levels on energy, differentiation, relevance, knowledge, and esteem D) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still E) high knowledge—evidence of past performance—a lower level of esteem, and even lower relevance, energy, and differentiation
You are acting ethically if you imply but do not state that an idea is much more important than it is
Indicate whether the statement is true or false