Question: show working Question 4. The Information extracted from the newspaper regarding transactions In Febniary 2020 is given below: May 2020 Few W Current market price
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Question 4. The Information extracted from the newspaper regarding transactions In Febniary 2020 is given below: May 2020 Few W Current market price of crude palm oil per metric tonne m Kelington Bhd. received an order for its product to be delivered in May 2020. The company will need 200 metric tonnes of crude palm oil to meet this demand. i. Calculate the number of contracts the company will need to partially hedge {30%} its exposure to price fluctuations. _m_EE {3 marks} ii. On 15'1 May 2020, the market price of cmde palm oil has risen to RM2,B4CI. Analyze the Information given and calculate the effective cost per metric tonne of crude palm oil. A. RM2,64D B. RM2,556 C. RM2.450 D. RM2,5?? {3 marks}
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