Question
In: Economics
You plan on selling 67 steer calves in January that you expect to weigh 750 pounds each. You have ovserved the following prices ($/cwt) over the last 3 years:
You plan on selling 67 steer calves in January that you expect to weigh 750 pounds each. You have ovserved the following prices ($/cwt) over the last 3 years:
| Cash | CME FC | Basis | |
| 2007 | $89.00 | $99.00 | a. ___________ |
| 2008 | $94.00 | $103.00 | b. ___________ |
| 2009 | $83.00 | $94.00 | c. ___________ |
What is your expected basis for January 2010 (3 year average)? d. ___________
Market Information 9/9/09
| Current Cash 750 lb steer | $87/cwt |
| Jan FC Futures | $101/cwt |
If you placed a hedge on 9/9/09 using Jan futures, what is your expected net sale price?
Assume that on Jan 25 you sell your feeder cattle for $85 per cwt at the local auction and that Jan. FC Futures are at $94 cwt. Show the results of a Futures hedge you placed on September 9 and offset on January 25.
----------| Date | ________| | ------------------------------| Cash | _______________________| | --------------------------------|| Futures || _________________________|| | -------------------------------------| Basis | _____________________________| |
9-Sept | | ________| | e. | | _______________________| | g. || || _________________________|| | i. | | _____________________________| |
25-Jan | | ________| | f. | | _______________________| | h. || || _________________________|| | j. | | _____________________________| |
k. NSP = ____________
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
World oil prices have been rapidly swinging over the last few years, in part because of...
World oil prices have been rapidly swinging over the last few
years, in part because of the declining value of the U.S. dollar,
changes in supply and demand, and OPEC’s attempts to manage output
in order to maintain higher prices. (OPEC stands for the
Organization of Petroleum Exporting Countries) As the president of
an oil producing and exporting company in Alberta: Explain how you
may use hedging to protect your company’s income. Share a recent
publication with your fellow students...
World oil prices have been rapidly swinging over the last few years, in part because of...
World oil prices have been rapidly swinging over the last few
years, in part because of the declining value of the U.S. dollar,
changes in supply and demand, and OPEC’s attempts to manage output
in order to maintain higher prices. (OPEC stands for the
Organization of Petroleum Exporting Countries)
As the president of an oil producing and exporting company in
Alberta:
Explain how you may use hedging to protect your company’s
income.
Share a recent publication with your fellow students...
We have the following information on the shares prices of Papa Smirph Corporation over the last...
We have the following information on the shares prices of Papa
Smirph Corporation over the last five years. Calculate the total
dollar return and percentage return on each share.
Year
Papa Smirph share price
Annual dividend per share
1
$20
$1.50
2
$25
$1.50
3
$22
$1.50
4
$30
$1.60
5
$32
$1.60
Select one:
a. $12; 60%
b. $19.7; 61.6%
c. $19.7; 98.5%
d. $12; 38.5%
e. $3.94; 15.3%
Given the following share price history, what is the arithmetic...
Assume you plan to have a child 10 years from now. You expect that your child...
Assume you plan to have a child 10 years from now. You expect
that your child will enroll in a university at age 18 and graduate
in 5 years. You want to have enough money once your child starts
university to pay tuition of $75,000 from the account at the
beginning of each year. You expect your child to receive a
scholarship of $25,000 (paid in one lump sum) when they start
university to put toward tuition. While your child...
You have worked hard over the last three years to save up enough money for a...
You have worked hard over the last three years to save up enough
money for a down payment on your first home. After meeting with
your lender, you are faced with two loan options. Both loans are 30
year, fixed rate mortgages with payments of $1,800 per month.
Origination fees will be 2% of the loan amount for either loan.
Loan A has a contract interest rate of 3.0% with no points, while
Loan B has a rate of 2.75%...
You have worked hard over the last three years to save up enough money for a...
You have worked hard over the last three years to save up enough
money for a down payment on your first home. After meeting with
your lender, you are faced with two loan options. Both loans are 30
year, fixed rate mortgages with payments of $1,800 per month.
Origination fees will be 2% of the loan amount for either loan.
Loan A has an APR of 3.0% with no points, while Loan B has an APR
of 2.75% with 1.25...
You expect ABC Corporation to generate the following free cash flows over the next five years:...
You expect ABC Corporation to generate the following free cash
flows over the next five years:
Year
1
2
3
4
5
FCF ($ millions)
75
84
96
111
120
Beginning with year
six, you estimate that ABC's free cash flows will grow at 6% per
year and that ABC's weighted average cost of capital is 15%.
If ABC has $500 million of debt, $50 million of cash, and 14
million shares of stock outstanding, then what is the price...
The stock market provided the following return over the last 3 years. Year Return 2016 +15...
The stock market provided the following return over the last 3
years.
Year
Return
2016
+15
2017
-30
2018
+35
What is the arithmetic average return?
What is the geometric average return?
Suppose you invested $1000 at the beginning of each of
2016,2017,2018 and withdrew all funds at the end of 2018, what is
your average return (IRR)
You are an owner of Tesco supermarket. You have made feature advertisings for last 3 years....
You are an owner of Tesco supermarket. You have made feature
advertisings for last 3 years. You want to know the effectiveness
of this feature advertising on store traffic(numbers of shoppers)
in different week. In data set, you have: average numbers of
shoppers, average numbers of feature advertising, and average price
each week.
With the table bellow has to be done a REGRESSION model
in Excel and interpret the results obtained from the equation based
on the questions.
Hi Price...
You are an owner of Tesco supermarket. You have made feature advertisings for last 3 years....
You are an owner of Tesco supermarket. You have made feature
advertisings for last 3 years. You want to know the effectiveness
of this feature advertising on store traffic(numbers of shoppers)
in different week. In data set, you have: average numbers of
shoppers, average numbers of feature advertising, and average price
each week.
Hi Price
Lo Price
Hi Adv
832
1102
625
888
821
1056
605
1407
545
878
701
977
454
999
605
1212
787
905
568
655
Lo...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Part A. Outline and explain all the VARIABLES and FACTORS that determine valuation and valuation analysis...
- Study the file polygon.h. It contains the header file for a class of regular polygons. Implement...
- what challenges can myths and stereotypes create for american indians?
- Date accuracy is very important because dates are used for discounts, payment terms and many reports....
- How many milliliters of concentrated hydrochloric acid solution (36.0% HCl by mass, density = 1.18 g/mL)...
- How does the rotating membership of the FOMC work? Why does the president of New York's...
- A gym owner is considering opening a location on the other side of town. The new...
ADVERTISEMENT