On August 1 the spot price of copper is 66 cents per lb. and the...
60.1K
Verified Solution
Link Copied!
Question
Finance
- On August 1 the spot price of copper is 66 cents per lb. and the December futures price is 68 cents per lb. On November 1 the spot price of copper is 70 cents per lb. and the December futures price is 71 cents per lb. A company entered into two December futures contracts on August 1 to hedge the purchase of 50,000 lbs of copper on November 1. Each contract is for the delivery of 25,000 lbs. The company closed out its position on November 1. What is the effective price paid by the company for the copper?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.