It is now June and the Ghana Cocoa Board (GCB) estimates that this year it will be

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It is now June and the Ghana Cocoa Board (GCB) estimates that this year it will be buying 40,000 tons of Cocoa during the crop harvest season which spans September to December. The current international market prices are as follows:

i. ii.

a. b.

Spot price is $840 per ton Future price is $915 per ton

Suppose that the spot price in September is $860 per ton, what is the hedging transaction for GCB?, analyze the results and advise accordingly.

Suppose that the spot price in December is $950 per ton, what is the hedging transaction for GCB?, analyze the results and advise accordingly.

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Introduction to Management Science

ISBN: 978-0132751919

11th Edition

Authors: Bernard W. Taylor

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Posted Date: May 21, 2022 11:53 PM

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It is now June and the Ghana Cocoa Board (GCB) estimates that this year it will be

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i Forward hedge rate 915 per ton Spot rate in september 860 per ton Since ... View the full answer

Introduction to Management Science

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