Old MathJax webview

Old MathJax webview

Suppose today is January 8, 2015, and your firm produces breakfast cereal and needs 115,000 bushels of corn in March 2015 for an upcoming promotion. You would like to lock in your costs today, because you are concerned that corn prices might rise between now and March. Use Table 25.2 a. What is the total price you are locking in for the 115,000 bushels of corn based on the day's closing price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total cost $ 13448 b. Suppose corn prices are $4.04 per pound in March. What is the profit or loss on your futures position? (Enter your answer as a positive value. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) (Click to select) $ Suppose today is January 8, 2015, and your firm produces breakfast cereal and needs 115,000 bushels of corn in March 2015 for an upcoming promotion. You would like to lock in your costs today, because you are concerned that corn prices might rise between now and March. Use Table 25.2 a. What is the total price you are locking in for the 115,000 bushels of corn based on the day's closing price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total cost $ 13448 b. Suppose corn prices are $4.04 per pound in March. What is the profit or loss on your futures position? (Enter your answer as a positive value. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) (Click to select) $