It is​ April, and Hans Anderson is planting his barley crop near​ Plunkett, Saskatchewan. He is concerned about losing his farm if his operations result in a loss at the end of the season. He expects to harvest 3,000 tonnes of barley and sell it in October. Futures contracts are available for October delivery with a futures price of $200 per tonne. Options with strike price of $200 per tonne are also​ available; puts cost $16 and calls cost $18.

a.Describe how Hans can fully hedge using futures contracts.

b. Given the strategy in a​), what will be the total net amount received by Hans​ (for all 3,000 ​tonnes) if the price of barley in October is as​ follows:i .$150 per​ tonne; ii. $200 per​ tonne; iii. $250 per tonne

c. Describe how Hans can fully hedge using options.

d. Given the strategy in ​(c​), what will be the total net amount received by Hans​ (for all​ 3,000 tonnes) if the price of barley in October is as​ follows:i. $150 per​ tonne; ii. $200 per​ tonne; iii. $250 per tonne

e. Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice.

i. Hans does not expect to have much cash available between May and September.

ii. Hans thinks there is a 25​% chance his crop will be destroyed by hail before he has a chance to harvest it.

iii.​ Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $600,000. If his business goes​ bankrupt, Hans's bank will foreclose and take his house and farm.

iv.​ Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $800,000. If his business goes​ bankrupt, Hans's bank will foreclose and take his house and farm.

INVENTORY CARDS

Sets Of Sting Ray Golf Clubs

(Q=530.Inventory2_week3)

MJO Basketball Sets

(Q=530.Inventory3_week3)

Pairs Of Football Boots

(Q=530.Inventory4_week3)

Quidditch Snitches

(Q=530.Inventory5_week3)

Specialist Tennis Raquets

Quantum Logistics, Inc., a wholesale distributor, is considering the construction of a new warehouse to serve the southeastern geographic region near the Alabama–Georgia border. There are three cities being considered. After site visits and a budget analysis, the expected income and costs associated with locating in each of the cities have been determined. The life of the warehouse is expected to be 12 years and MARR is 15%/year. City Initial Cost Net Annual Income Lagrange $1,260,000 $480,000 Auburn $1,000,000 $410,000 Anniston $1,620,000 $520,000 a. What is the present worth of each site? b. What is the decision rule for determining the preferred site based on present worth ranking? c. Which city should be recommended?

I need help for B and C if possible please

The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, “This is a golden opportunity.” The mine will cost $2,700,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $375,000 at the end of the first year, and the cash inflows are projected to grow at 8 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $430,000 at the end of Year 11. a. What is the IRR for the gold mine? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. The Utah Mining Corporation requires a return of 10 percent on such undertakings. Should the mine be opened? Yes No

1. A Taco Bell store finds that the marginal cost of a taco is less than the average total cost of producing tacos. Can you determine whether the average total cost of making tacos will rise, fall, or not change if another taco is produced? Explain your answer.
2. Suppose that a firm’s total costs are as shown in the table below.

1. What are the firm’s total fixed costs?
2. What are the firm’s variable costs when it produces 4 units a year?
3. What is the firm’s marginal cost between 1 and 2 units of output? Between 2 and 3? Between 3 and 4? Between 4 and 5?
4. What is the firm’s average total cost when it produces 1 unit per year? When it produces 2? When it produces 3?

4. Fill in the blanks in the table below.

[The following information applies to the questions displayed below.]

QualCo manufactures a single product in two departments: Cutting and Assembly. During May, the Cutting department completed a number of units of a product and transferred them to Assembly. Of these transferred units, 39,400 were in process in the Cutting department at the beginning of May and 169,500 were started and completed in May. May’s Cutting department beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of May, 53,200 additional units were in process in the Cutting department and were 60% complete with respect to materials and 20% complete with respect to conversion. The Cutting department had $542,950 of direct materials and $407,560 of conversion cost charged to it during May. Its beginning inventory included $75,975 of direct materials cost and $30,393 of conversion cost.

2-4. Using the FIFO method, assign May’s costs to the units transferred out and assign costs to its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

Consider the following data: equilibrium price = $15, quantity of output produced = 800 units, average total cost = $13, and average variable cost $9. Given this information, total revenue is ___________, total cost is _____________, and total fixed cost is ______________.

$9,000; $8,000; $6,000

$12,000; $10,400; $3,200

$1,200; $1,040; $320

$12,000; $10,400; $7,200