Hason Feedlot Ltd. used the commodity futures market to hedge an anticipated mid- October, 200-tonne barley...
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Hason Feedlot Ltd. used the commodity futures market to hedge an anticipated mid- October, 200-tonne barley purchase. On April 15, November barley futures were trading at $247 per tonne. The hedge was placed on April 15. The feedlot anticipated a $15 basis under at the time of the mid-October cash purchase. October 15, 2019 The cash grain was purchased. November barley futures were trading at $215 per tonne. The cash price was $183.72 per tonne. The FCM fee was $1 per tonne. Show the futures and cash transactions. Calculated the net purchase price for the hedged barley. Also calculate the total amount received from this transaction. Hason Feedlot Ltd. used the commodity futures market to hedge an anticipated mid- October, 200-tonne barley purchase. On April 15, November barley futures were trading at $247 per tonne. The hedge was placed on April 15. The feedlot anticipated a $15 basis under at the time of the mid-October cash purchase. October 15, 2019 The cash grain was purchased. November barley futures were trading at $215 per tonne. The cash price was $183.72 per tonne. The FCM fee was $1 per tonne. Show the futures and cash transactions. Calculated the net purchase price for the hedged barley. Also calculate the total amount received from this transaction.
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Futures transaction Purchase of 200 tonnes of November barley futures at 247 per tonne ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
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