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Southern Fields has an inventory of 838,000 pounds of sugar. The firm placed a partial hedge on t 1 answer below » 1. Southern Fields has an inventory of 838,000

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1. Southern Fields has an inventory of 838,000
pounds of sugar. The firm placed a partial hedge on t 1 answer below » 1. Southern Fields has an inventory of 838,000
pounds of sugar. The firm placed a partial hedge on this inventory
by selling 6 futures contracts at 9.56. The futures contracts are
based on 112,000 pounds and quoted in cents per pound. At the time
the firm sold the sugar, the spot rate was 9.63. How much profit
did the firm lose because of the hedge? (2 points) 2. The Shirt Factory purchased 10 futures contracts on cotton at
a quoted price of 71.14 as a hedge against its inventory needs. At
the time it actually needed the cotton, the spot price was 71.56.
Cotton futures are based on 50,000 View complete question » 1. Southern Fields has an inventory of 838,000
pounds of sugar. The firm placed a partial hedge on this inventory
by selling 6 futures contracts at 9.56. The futures contracts are
based on 112,000 pounds and quoted in cents per pound. At the time
the firm sold the sugar, the spot rate was 9.63. How much profit
did the firm lose because of the hedge? (2 points) 2. The Shirt Factory purchased 10 futures contracts on cotton at
a quoted price of 71.14 as a hedge against its inventory needs. At
the time it actually needed the cotton, the spot price was 71.56.
Cotton futures are based on 50,000 pounds and quoted in cents per
pound. How much did the Shirt Factory save by hedging cotton? (2
points) 3. Will purchased 3 futures contracts on corn. The contract size
is 5,000 bushels and the price is quoted in cents per bushel.
Assume the initial margin requirement is 4.5 percent of the
contract value. What is the amount of the initial margin if the
futures quote is 624? (2 points) 4. The spot price for a non-dividend-paying stock
is $24. The risk-free rate is 2.8 percent and the market rate is
10.6 percent. What is the 6-month futures price of this stock if
spot-futures parity exists? (2 points) 5. The 4-month futures price on a
non-dividend-paying stock is $23.60. The risk-free rate is 2.25
percent and the market rate is 10.45 percent. What is the spot rate
for this stock if spot-futures parity exists? View less » Aug 04 2015 10:43 PM



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