Why do farmers and other users of commodity futures hedge their positions?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 56% (16 reviews)
Users and suppliers of commodities such as fabricators ...View the full answer
Answered By
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice.
I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Hedge of Firm Commitment: Short in Commodity Futures On May 1, 2014, Keister, Inc., sells 100,000 units of commodity futures at $5/unit for delivery in 120 days and makes an initial margin deposit of...
-
To what agencies and other users of financial statements must banks report?
-
Investors, creditors, and other users of financial statements often argue that there should be more transparency in published financial statements. This argument is based, at least to some extent, on...
-
What is a reporting entity?
-
Assume that you are testing the client's bank reconciliation at year-end. Following is a list of items on the reconciliation. For each item (listed as (a) through (e)), identify one or more...
-
A radionuclide ionizes the air in a smoke detector, which in turn allows the flow of electricity. When smoke particles enter the detector, they disrupt the electric current and set off an alarm. What...
-
Copeland Hotels Ltd provide three levels of rooms in their hotels. The following planning data are provided for the year ended 31 December 2026: Fixed hotel overhead costs are \($24\) 360 000 per...
-
All jobs at Frankfurt Inc., which uses a job order costing system, go through two departments (Fabrication and Assembly). Overhead is applied to jobs based on machine hours in Fabrication and on...
-
What are the consequences of a poor person-job fit? What are the consequences of a poor person-organization fit? What are the benefits of hiring the right people for the right job and what are the...
-
For the beam shown in Figure P4-79, use a computer program to determine the deflection at the mid-span using four beam elements, making the shear area zero and then making the shear area equal 5/6...
-
What is margin and why is it a source of leverage? What is a margin call? How does margin for futures differ from margin for stocks?
-
If an investor anticipates a decline in a commoditys price, which futures position should he or she take?
-
(a) Distinguish between mandatory audit firm rotation and mandatory tendering. (b) Explain what is meant by an open book approach to tendering and outline the advantages of this approach for those...
-
Design a rewards system to encourage intrapreneurship.
-
Discuss the various ways to segment the sports market based on demographics. Which of the demographic bases are the most effective when segmenting the sports market and why?
-
(a) Distinguish between cost allocation, cost apportionment and cost absorption, (b) Explain in brief various methods for apportionment of service departments cost over production departments.
-
Define sports marketing and discuss how sports are related to entertainment.
-
What is meant by under/overabsorption of factory overheads? How will you account for them in cost accounts? Does it bear any impact while submitting quotations?
-
Are budgets part of the performance measurement system or the performance reward system?
-
In the series connection below, what are the respective power consumptions of R, R2, and R3? R R www 4 V=6V P1-3 W; P2=3W; and P3= 3 W OP10.5 W; P2-1 W; and P3= 1.5 W P1=1.5 W; P2=1 W; and P3= 0.5 W...
-
What is a stack frame and why is it so important?
-
Answer the following: a. What is the difference between a firm's cash cycle and its operating cycle? b. How will a firm's cash cycle be affected if it increases its inventory, all else being equal?...
-
What are the ways that receivables management can affect a firm's value?
-
The Greek Connection had sales of $32 million in 2013, and a cost of goods sold of $20 million. A simplified balance sheet for the firm appears below: a. Calculate The Greek Connection's net working...
-
How truly do drive elements and social impact instruments, for example, social personality hypothesis and gathering polarization, deeply mold hierarchical way of behaving and decision-production at...
-
Sub Station and Planet Sub reported the following selected financial data ( $ in thousands ) . Sub Station s business strategy is to sell the best tasting sandwich with the highest quality...
-
The credit manager of Montour Fuel has gathered the following information about the company's accounts receivable and credit losses during the current year: Net credit sales for the year $ 7 , 5 0 0...
Study smarter with the SolutionInn App