Why do farmers and other users of commodity futures hedge their positions?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (17 reviews)
Users and suppliers of commodities such as fabricators ...View the full answer
Answered By
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice.
I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Hedge of Firm Commitment: Short in Commodity Futures On May 1, 2014, Keister, Inc., sells 100,000 units of commodity futures at $5/unit for delivery in 120 days and makes an initial margin deposit of...
-
To what agencies and other users of financial statements must banks report?
-
Investors, creditors, and other users of financial statements often argue that there should be more transparency in published financial statements. This argument is based, at least to some extent, on...
-
What is a reporting entity?
-
Assume that you are testing the client's bank reconciliation at year-end. Following is a list of items on the reconciliation. For each item (listed as (a) through (e)), identify one or more...
-
In Exercises 9598, use long division to rewrite the equation for g in the form Then use this form of the functions equation and transformations of f(x) = 1/x to graph g. quotient + remainder divisor
-
A steel shaft of diameter \(d\) and length \(l\) is fixed at one end and carries a propeller of mass \(m\) and mass moment of inertia \(J_{0}\) at the other end (Fig. 8.30). Determine the fundamental...
-
On January 1, Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares of Soriano, Inc., in exchange for $31.25 per share cash. The remaining 20 percent of Sorianos shares...
-
On January 1 , 2 0 2 3 , Malinois Inc. issued $ 1 0 0 , 0 0 0 of 6 % bonds, dated January 1 . Interest is payable semiannually on June 3 0 and December 3 1 . The bonds mature in 1 0 years. The...
-
The coefficient of x in the expansion of (2 ax) 3 is 96. Find the value of the constant a.
-
What is margin and why is it a source of leverage? What is a margin call? How does margin for futures differ from margin for stocks?
-
If an investor anticipates a decline in a commoditys price, which futures position should he or she take?
-
Compute the future value of $1,625 continuously compounded for a. Five years at an annual percentage rate of 14 percent. b. Three years at an annual percentage rate of 6 percent. c. Ten years at an...
-
Draw free-body diagrams of the rod shown below in each of the yz, xy, and xz planes. The rod is supported by two rings, each of which has a hole that is slightly larger than the rod. Treat the rings...
-
Consider the following boundary layer equation: 1 f"" +=-=ff" subject to boundary conditions: = f = -2s, f' = 0 at n = 0, f' 1 as 400, 0, where denotes differentiation with respect to n and s is the...
-
Draw the sketches to indicate the conventional representation of the following: (a) A coarse ISO metric V-threaded rod of nominal diameter 10mm and thread length 25mm.(Take H=0.866p) (b) A threaded...
-
Let A = F+F. Show vector A in the figure by constructing the appropriate parallelogram. Consider F3 = -F2. Show F3 in the figure. Let B = F+F3. Show B in the figure.
-
The diagram below represents bwo concurrent forces acting on an object that are drawn to a scale of 1 cm = 5.0 newtons. 201 +33N=C 400+1089=2 C = 35.6 N 38.6 N What is the magnitude of the force...
-
In an effort to boost output, the government passes a large fiscal stimulus that raises government purchases by $1 trillion. Use the AD-AS framework to predict how prices and output change in the...
-
In the series connection below, what are the respective power consumptions of R, R2, and R3? R R www 4 V=6V P1-3 W; P2=3W; and P3= 3 W OP10.5 W; P2-1 W; and P3= 1.5 W P1=1.5 W; P2=1 W; and P3= 0.5 W...
-
What is a stack frame and why is it so important?
-
Answer the following: a. What is the difference between a firm's cash cycle and its operating cycle? b. How will a firm's cash cycle be affected if it increases its inventory, all else being equal?...
-
What are the ways that receivables management can affect a firm's value?
-
The Greek Connection had sales of $32 million in 2013, and a cost of goods sold of $20 million. A simplified balance sheet for the firm appears below: a. Calculate The Greek Connection's net working...
-
cos (2x2)-1 Let f(z) = Evaluate the 6th derivative of fat z = 0. 2 f(0) (0)= Hint: Build a Maclaurin series for f(x) from the series for cos(x).
-
Do you think that it should be legal to falsely implicate a suspect as a participant in a crime by suggesting that there is physical evidence from their person, reflecting that they were present at...
-
In this practice activity, you will identify key roles and responsibilities of criminal justice professionals regarding victims. You will also describe potential consequences to victims when those...
Study smarter with the SolutionInn App