Your company needs 500,000 pounds of copper each month. The current spot price is $3.205 per...
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Your company needs 500,000 pounds of copper each month. The current spot price is $3.205 per pound. The next month future contract is trading at $3.321 per pound. You decide hedge half of your next month's demand. How much did you save/lose by hedging if the spot price next month is $3.166 per pound? Your company needs 500,000 pounds of copper each month. The current spot price is $3.205 per pound. The next month future contract is trading at $3.321 per pound. You decide hedge half of your next month's demand. How much did you save/lose by hedging if the spot price next month is $3.166 per pound?
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Related Book For
Operations Management Processes and Supply Chains
ISBN: 978-0133872132
11th edition
Authors: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Posted Date:
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