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Kayla is a speculator in the market for a rare French goat cheese known as Crottin de Chavignol. She entered into a futures contract with farmers from the small town of Chavignol, where the cheese is produced. The futures contract specifies that after 45 months, Kayla will purchase 7000 kilograms (kg) of Crottin de Chavignol at $210/kg. When the specified number of months has passed, the price of Crottin de Chavignol is $260/kg. What is Kayla's profit per kilogram? Please denote losses with a negative sign. Profit per kilogram = $ Which of the statements is NOT true about futures contracts? Few people have the space or resources to purchase commodity futures. O Many futures contracts are settled in cash that do not require actual delivery of the commodity. O Futures markets can help to reduce investor risk. O The futures markets are used as a prime tool for speculators. Kayla is a speculator in the market for a rare French goat cheese known as Crottin de Chavignol. She entered into a futures contract with farmers from the small town of Chavignol, where the cheese is produced. The futures contract specifies that after 45 months, Kayla will purchase 7000 kilograms (kg) of Crottin de Chavignol at $210/kg. When the specified number of months has passed, the price of Crottin de Chavignol is $260/kg. What is Kayla's profit per kilogram? Please denote losses with a negative sign. Profit per kilogram = $ Which of the statements is NOT true about futures contracts? Few people have the space or resources to purchase commodity futures. O Many futures contracts are settled in cash that do not require actual delivery of the commodity. O Futures markets can help to reduce investor risk. O The futures markets are used as a prime tool for speculators.
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Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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