Chapter 25, Problem 13CQ

a.

Summary Introduction

To explain: The hedging strategy using future contracts which may consider public utility is concerned about rising costs.

Cost: It is that value of money which has been put into the production of a product. It includes all the amount of money that comes in production, research, retailing and accounting.

b.

Summary Introduction

To explain: The candy manufacturer is concerned about rising costs.

c.

Summary Introduction

To explain: The corn harvester is concerned about the lowering costs.

d.

Summary Introduction

To explain: The manufacturer of photographic film is concerned about rising costs.

e.

Summary Introduction

To explain: The natural gas producer is concerned about lowering costs.

f.

Summary Introduction

To explain: A bank has derived all the income from long-term, fixed rate residential mortgage.

g.

Summary Introduction

To explain: The decline in stock market after investing stock mutual funds in large blue chip stocks.

h.

Summary Introduction

To explain: An importer of army knives will be paying for its order in six months in S Country francs.

i.

Summary Introduction

To explain: Country U’s exporter of construction equipment decided to sell some cranes to construction firm of another country and get paid in Euros after 3 months.