An automobile manufacturer expects to buy 1 , 0 0 0 tons of stainless steel in 6
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Question:
An automobile manufacturer expects to buy tons of stainless steel in months time. To hedge the cost of the input the producer goes long futures contracts for tons aluminum at the cost of $ per ton. In months time the price of stainless steel has risen to $ per ton. What will be the total money spent by the manufacturer from the purchase of the tons of stainless steel including any money received or spent to settle the futures contracts
Assume all transaction costs are zero. Enter the entire answer in the answer box for example, if the answer is then enter rather than
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