You go short the soybean market 2 contracts on March 1 at a price of $11.58, on May 15 you offset for $11.47. Did you make or lose money and how much? You go long the corn market 5 contracts on Dec 1 at a price of $3.96, on March 15 you offset for $3.85. Did you make or lose money and how much?
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- A large agribusiness firm has contracted to deliver 100,000 bushels of wheat for $8.50 a bushel at the end of October. On the delivery date, the spot price of wheat is $8.70 per bushel. Which of the following is true? a. the buyer of the contract has a 20,000 loss b. the buyer of the contract has a 20,000 profit c. the seller of the contract has 20,000 profitAssume that in March a farmer and a baker enter into a forward contract on 100,000 bushels of wheat at a price of $5 per bushel for delivery in September. In September the spot price of wheat is $5.2 per bushel. Who has profited from entering into the forward contract, by how much?ABC Co. bought 20 long forward contracts for corn at strike price of $3.67 per bushel (each contract is for 5,000 bushels). How much is the profit (loss) of ABC Co. if the actual market value of corn on agreed date contract at $3.78?a. $9,500b. ($9, 500)c. ($11,000)d. $11,000
- Freshly Farms plants 80 acres of Brussels sprouts every spring. Freshly sells its sprouts to a farmers cooperative, which sells them to a wholesaler, which sells them to retailers, which sells them to consumers. The farmers cooperative buys Freshly Brussels sprouts for $0.98 per pound. The cooperative takes a 16% margin on the cooperative's selling price. The wholesaler takes a 16% markup on the wholesaler's cost. The retailer takes a 15% margin on the retailer's selling price. How much does a consumer pay to the retailer for one pound of Freshly Farms Brussels sprouts? (Rounding: penny.) ANSWER IS: 1.59, but HOW is that the answer? Please explain.Explain who will be at profit and who will lost based on the situation belowand show the calculation. Given that in May a farmer and a baker enter into a forward contract on a thousand bushels of wheat at a price of $5.00 per bushel for delivery in December. In December the spot price of wheat is $4.00 per bushel.Jean Corngrower sells her corn to the elevator when she finishes harvest on October 30. She gets $6.55/bu for her corn. Jean wants to avoid storage costs and related interest costs, but she also wants to take advantage of any seasonal price movement upward. She buys a March 640 corn call for $0.35/bu. Come late January March corn futures are trading at $6.87/bu. Jean decides to get out of the call at that time. What is Jean’s realized price for the corn, not including brokerage fees or interest costs?
- A vendor prepares 100 hotdogs every day and sells at $20/piece. For each hot dog, he spends $12 in the raw material. Additionally, he spends $1 for packing each hotdog and monthly $50, $20, $10 as food truck rent, electricity and other expenses respectively. On a particular day in June it rained heavily so vendor was able to sell only 80 hot dogs. For finishing the stock, he sold remaining hotdogs for $5/piece. Determine vendor’s profit for that day? Assume there are 30 days in the month. Question 8 options: 1) $97.3 2) $397.4 3) $197.4 4) $200Schrute Farm Sales buys portable generators for $460 and sells them for $750. He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $7000 a month rent for his store, and also pays $1800 a month to his staff in addition to the commissions. Mr. Schrute sold 300 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would be his contribution margin? Question 49 options: $75,750 $149,250 $374,250 $225,000A microbrewery purchases malt for production. The supplier charges $35 for delivery (no matter how much is delivered) and $1.20 per gallon. The annual holding cost is 35% of the price per gallon. Usage is 250 gallons/week. a) If the order quantity is 1000 gallons, what is the average inventory? b) If the order quantity is 1500 gallons, how many orders are placed each year? c) What is the EOQ quantity? d) If the order quantity is 2500 gallons, what is the sum of the ordering and holding costs PER GALLON? e) If orders are for the EOQ amount, what is the annual cost of the inventory system as a percentage of the annual purchase cost? f)If orders must be in integer multiples of 1000 gallons, how much should be ordered to minimize ordering and holding costs PER GALLON? g) A 3% purchase price discount is given if orders are for 8000 gallons or more. What would total annual costs (purchasing, ordering, and holding) be using this discount?
- Freddie the Farmer currently has soybeans growing in his fields. Freddie's concerned that the price of soybeans may decline before he has the chance to take his output to market in 3 months. Freddie believes his crop yield will be 120,000 bushels of soybeans so he contacts a broker and is quoted a price of $3.50 for 3-month soybean futures contract (assume each contract is for 15,000 bushels). The broker informs Freddie that his initial margin will be $3,000 per contract with a maintenance margin of $1,500 per contract. Based on this information, answer the following questions Should Freddie go long or short in soybeans? Why? How many contracts should Freddie transact in? How much is each contract worth at inception? How much must Freddie remit to the broker (in total) at the time the futures contracts are purchased? If the futures price increases to $3.62 one month into the contract, what is the value of each contract? What will Freddie have to do per the terms of the…Freddie the Farmer currently has soybeans growing in his fields. Freddie's concerned that the price of soybeans may decline before he has the chance to take his output to market in 3 months. Freddie believes his crop yield will be 120,000 bushels of soybeans so he contacts a broker and is quoted a price of $3.50 for 3-month soybean futures contract (assume each contract is for 15,000 bushels). The broker informs Freddie that his initial margin will be $3,000 per contract with a maintenance margin of $1,500 per contract. Based on this information, answer the following questions (YOU MUST SHOW ALL CALCULATIONS TO RECEIVE CREDIT): Should Freddie go long or short in soybeans? Why? How many contracts should Freddie transact in? How much is each contract worth at inception? How much must Freddie remit to the broker (in total) at the time the futures contracts are purchased? If the futures price increases to $3.62 one month into the contract, what is the value of each contract?…A door manufacturer decides to sell each door for $ 479. It has a manufacturing cost ofdoor is $ 237 and fixed costs are $ 4,114 a week.1. How many doors should you produce and sell each week in order to guaranteethe business to break even?2. If you sell 65 doors per month you could guarantee your breakeven point. Explain your answer.