Eastmark Electrical Equipment Manufacturers needs to secure its supply of copper for the next year. The price
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at market prices. Eastmark has also entered into a futures contract with a financial institution for 500,000 pounds per month at $3.25 per pound. CWT (hundredweight) is equal to 100 pounds in the United States.
a. Calculate the one month financial and the physical results if the market price of copper has risen to $4.50 per pound.
b. Calculate the one month financial and the physical results if the market price of copper has fallen to $3.00 per pound.
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Related Book For
Operations Management Processes and Supply Chains
ISBN: 978-0133872132
11th edition
Authors: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
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