On March 1 a commodity's spot price is $60 and its August futures price is $59. On July 1 the spot price is $64 and the
August futures price is $63. 50. A company entered into futures contracts on March 1 to hedge its purchase of the
commodity on July 1. It closed out its position on July 1. What is the effective price (after taking account of hedging) paid
by the company?
Answers
The effective price paid by the company after taking account of hedging would be $63.50, which is the August futures price on July 1. Calculate the profit or loss on the futures contracts and subtract that from the spot price on July 1, to determine the effective.
By entering into futures contracts on March 1, the company was able to lock in the price of $59 for the commodity, when the spot price was $60 and the futures price was $59, the difference between the futures price and the spot price on March 1 was $1 ($60 - $59), so the company had to pay an extra $1 per unit to hedge its purchase.
When the spot price increased to $64 on July 1, the company was still able to purchase the commodity at the lower hedged price of $59, plus the cost of the futures contract, which resulted in an effective price of $63.50. Overall, hedging helped the company mitigate the risk of price volatility and ensured a more predictable cost for the commodity purchase.
Effective price = Spot price - Profit from futures contracts
Effective price = $64 - $0.50(The difference between the futures price and the spot price on July 1 was $0.50 ($64 - $63.50))
Effective price = $63.50 per unit
Therefore, the effective price paid by the company after taking into account hedging was $63.50 per unit.
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Related Questions
Suppose that we run 5 independent trials, each of which results in one of the outcomes X, Y, or Z, with probabilities 0.1, 0.4, and 0.5, respectively. Find the probability that both outcome Y and outcome Z occur at least once.
Answers
Using the binomial distribution, it is found that there is a 0.8909 = 89.09% probability that both outcome Y and outcome Z occur at least once.
The trials are independent, hence the binomial distribution can be used.
What is the binomial distribution formula?The formula is:
\(P(X = x) = C_{n,x}.p^{x}.(1-p)^{n-x}\)
\(C_{n,x} = \frac{n!}{x!(n-x)!}\)
The parameters are:
x is the number of successes.n is the number of trials.p is the probability of a success on a single trial.In this problem:
5 trials, hence \(n = 5\).For the probability that outcome Y does not happen, we have that:
0.1 probability of X, 0.5 of Z, hence \(p = 0.6\).The probability is P(X = 5), that is, all five outcomes are either X or Z, then:
\(P(X = x) = C_{n,x}.p^{x}.(1-p)^{n-x}\)
\(P(X = 5) = C_{5,5}.(0.6)^{5}.(0.4)^{0} = 0.0778\)
For the probability that outcome Z does not happen, we have that:
0.1 probability of X, 0.4 of Y, hence \(p = 0.5\).The probability is P(X = 5), that is, all five outcomes are either X or Y, then:
\(P(X = x) = C_{n,x}.p^{x}.(1-p)^{n-x}\)
\(P(X = 5) = C_{5,5}.(0.5)^{5}.(0.5)^{0} = 0.0313\)
Then, the probability that at least one does not happen is:
\(p = 0.0778 + 0.0313 = 0.1091\)
The probability that both happen is:
\(1 - p = 1 - 0.1091 = 0.8909\)
0.8909 = 89.09% probability that both outcome Y and outcome Z occur at least once.
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A building contractor needs 500 sheets of drywall. Which is the most cost-effective way to buy them?
50 sheets at a time for $600
100 sheets at a time for $800
250 sheets at a time for $2,500
500 sheets at a time for $4,500
Answers
Answer:
The answer is B
Step-by-step explanation:
IF YOU ACUALLY DO THE MATH.....
100 x 5= 5000 so 800 times 5 is 4000.
4000 is less than 4500 so b is for a better price.
DO NOT LISTEN TO THE PERSON ABOVE ME PLEASE!!!! HE IS WRONG. 4500 IS WAY MORE THAN 4000. PLZ GIV BRAINLIEST TOO.:DAnswer:
A-50 sheets at a time for $600 =6000
Step-by-step explanation:
b 100 sheets at a time for $800=4000
c 250 sheets at a time for $2,500=5000
d 500 sheets at a time for $4,500=4500
Which is higher well A
2.6 sq. cm X 3.1 cm
Answers
Answer 8.06 X 10-8 M*4
Step-by-step explanation: No Explanation Just Answer srry could think of a way to say it.
This is a open ended question.
Subtract the fractions
7/10 - 2/10 = (Blank)
What is in the blank?
Answers
Answer: 1/2 or 5/10
Step-by-step explanation:
Because the fractions have the same denominator, you can just subtract the top numbers from the fractions to 5/10. 5/10 is equivalent to 1/2.
the prime factorization of 816
Answers
Answer:
2^4*3*17
The biggest prime factors are 2, 13 and 17.
Step-by-step explanation:
it goes like this :
we start with 2 as the smallest prime number (and then go up to the next and the next prime number to check if it is a factor), and we end, when we reach 1 as final result.
816 ÷ 2 = 408
408 ÷ 2 = 204
204 ÷ 2 = 102
102 ÷ 2 = 51
51 ÷ 2 no
51 ÷ 3 = 17
17 ÷ 3 no
17 ÷ 5 no
17 ÷ 7 no
17 ÷ 11 no
17 ÷ 13 no
17 ÷ 17 = 1 finished
so,
816 = 2⁴×3×17
remember, we are looking only for prime numbers as factors. so, e.g. 9 or 15 are not prime numbers.
PLEASE HELP !!!
the local bakery made a profit of $210 for each day for five days .what was the total profit for five days ?
Answers
Answer: it should be 1050
steve and elsie are camping in the desert, but have decided to part ways. steve heads north, at 8 am, and walks steadily at 2 miles per hour. elsie sleeps in, and starts walking west at 2.5 miles per hour starting at 11 am.
Answers
After 2.57 hours, the distance between Steve and Elsie will be 25 miles.
What exactly is the distance?Distance is the sum of an object's movements, regardless of direction. The distance can be defined as the amount of space an object has covered, regardless of its starting or ending point. Use the formula d = st, or distance equals speed times time, to find the distance. Since both represent a certain amount of distance per unit of time, such as miles per hour or kilometers per hour, rate and speed are comparable.So, let t (hours) represent the amount of time Elsie needs to travel before they are 25 miles apart.
Steve takes longer because he is 2 hours earlier, so his time is t + 2.
Steve travels x\(s_s=2(t+2)\) miles to the north.Elsie travels a distance \(s_c=2.5 t\) to the west.So, according to the formula the distance between Steve and Elsie will be:
\(\sqrt{s_s^2+s_c^2}=\sqrt{(2(t+2))^2+(2.5 t)^2}=25\)Solve for t as follows:
\(\begin{aligned}&(2(t+2))^2+(2.5 t)^2=25^2=625 \\&4(t+2)^2+6.25 t^2=625 \\&4\left(t^2+4 t+4\right)+6.25 t^2=625 \\&10.25 t^2+16 t-609=0 \\&t=\frac{-b \pm \sqrt{t^2-4 a x}}{2 a} \\&t=\frac{-16 \pm \sqrt{(16)^2-4 *(10.25) *(-109)}}{2 *(10.25)} \\&t=\frac{-16 \pm 68.74}{20.5}\end{aligned}\)
So, t = 2.57 or t = -4.13.
As we know that time can only be positive so it t = 2.57.Therefore, after 2.57 hours, the distance between Steve and Elsie will be 25 miles.
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The correct question is given below:
Steve and Elsie are camping in the desert, but have decided to part ways. Steve heads north, at 8 AM, and walks steadily at 2 miles per hour. Elsie sleeps in and starts walking west at 2.5 miles per hour starting at 10 AM. When will the distance between them be 25 miles?
HELPPPPP
This table models a linear function.
x −12 −8 −4 4
y 4 2 0 −4
Enter the coordinates of the y-intercept in the boxes.
Answers
Answer:
(0,-2) is the correct answer.
Step-by-step explanation:
on Tuesday at lunchtime, it was 29 degrees Celsius, by sunset, the temperature had dropped by 16
Answers
The equation for temperature change is T = -1.5t + 29 and the number line is plotted.
What is a number line?
A picture of numbers on a straight line is called a number line. It serves as a guide for contrasting and arranging numbers. Any real number, including all whole numbers and natural numbers, can be represented by it.
Let T represent the temperature in degrees Celsius, and let t represent the time in hours after lunchtime.
Then write an expression for the situation as follows:
T = -1.5t + 29
Here, -1.5t represents the decrease in temperature per hour, since the temperature is dropping at a rate of 1.5 degrees Celsius per hour.
Adding 29 to -1.5t gives the initial temperature of 29 degrees Celsius at lunchtime.
To illustrate this situation on a number line diagram, we can plot the temperature T as a function of time t.
The diagram would have time t on the horizontal axis and temperature T on the vertical axis.
Label the point (0, 29) on the diagram to represent the temperature at lunchtime, and the point (x, 16) to represent the temperature at sunset, where x is the number of hours after lunchtime.
Then draw a straight line connecting these two points to represent the linear relationship between temperature and time.
The line slopes downward from left to right, indicating that the temperature is decreasing over time.
Therefore, the number line diagram is plotted.
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On Tuesday at lunchtime, it was 29 degrees Celsius. By sunset, the temperature had dropped to 16 degrees Celsius. Please write an expression for the situation, and draw a number line diagram.
will someone tell me the equation for this word problem.
will give brainliest
Answers
Answer:
5c + 3d = 55
4c + 3d = 53
Step-by-step explanation:
lets pretend c= cost of chicken, d= cost of duck
5 chickens total cost would be 5c
3 ducks total cost would be 3d
in equation one added together would be 55 for total cost (given in word problem).
repeat for second equation.
please give thanks :)
A student is planning to attend college in 5 years. The student has saved $1,200 and plans to save another $50 per month over the next 60 months. Based on this information about the student’s plan, which statement about the possible choices for a college is true?
Answers
The correct answer choice:
The student would be able to afford the in-state cost for one year at a public 2-year college.
The correct option is D.
What is multiplication?Multiplication is a mathematical arithmetic operation. It is also a process of adding the same types of expression some number of times.
Example - 2 × 3 means 2 is added three times, or 3 is added 2 times.
Given:
A student is planning to attend college in 5 years.
The student has saved $1,200 and plans to save another $50 per month over the next 60 months.
The total savings,
= 1200 + (50 x 60)
= $4200
That is equivalent to the cost of one year at a public 2-year college.
Therefore, the saving amount is equivalent to the cost of one year at a public 2-year college.
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The table shows the cost per year of attending different types of colleges.
A student is planning to attend college in 5 years. The student has saved $1,200 and plans to save another $50 per month over the next 60 months.
Based on this information about the student's plan, which statement about the possible choices for a college is true?
Answer choices
The student would be able to afford the cost for one year at a private 4-year college.
The student would be able to afford out-of-state cost for half a year at a 4-year public college.
The student would be able to afford in-state cost for half a year at a public 4-year college.
The student would be able to afford in-state cost for one year at a public 2-year college.
Passing through (3, -3) and perpendicular to y=3x+5
Answers
Answer:
Find the negative reciprocal of the slope of the original line and use the point-slope formula y−y1=m(x−x1) to find the line perpendicular to y=3x−5. y=−13x−2
Step-by-step explanation:
the national fire incident reporting service stated that, among residential fires, 73% are in family homes, 20% are in apartments, and 7% are in other types of dwellings. if fourteen residential fires are independently reported on a single day, what is the probability that six are in family homes, four are in an apartment, and four are in another type of dwelling? (round your answer to four decimal places.)
Answers
32
4. Which table best represents the relationship between n, the position of the term
in a sequence, and the value of the term defined by the rule 5n-3?
Position
1 2 3 4
Value of Term 8 13 18 23
А
209
В.
Position
1
2 3
4
n
Value of Term
2
-1 4-7
C.
Position
1
2
3
4
n
Value of Term
2
7
12
17
D
Position
1
2
4
n
cw
Value of Term
5
10 15 20
Answers
the degrees of freedom for a data table with 10 rows and 11 columns is?
Answers
The degrees of freedom for a data table can be calculated using the formula:
Degrees of Freedom = (Number of Rows - 1) * (Number of Columns - 1)
In this case, the data table has 10 rows and 11 columns. Plugging these values into the formula:
Degrees of Freedom = (10 - 1) * (11 - 1) = 9 * 10 = 90
Therefore, the degrees of freedom for the given data table is 90.
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Do the following represent functions? Explain your reasoning y = -7x + 8
Answers
The expression is:
\(y=-7x+8\)To be a function this has to have a unique values of y for each values of x, son in this case the expression has the form of a linear function that is equal to:
\(y=mx+b\)So So for example if i replace x = 1:
\(\begin{gathered} y=-7(1)+8 \\ y=1 \end{gathered}\)There is not other number that I can give to x that the output of y will be equal to 1, this means that the expression y = -7x + 8 is a function
Which graph represents the function? g (x) = StartLayout Enlarged left-brace First row negative x minus 2, x less-than-or-equal-to negative 2 Second row negative x squared, negative 2 less-than x less-than 0 Third row x, x greater-than 0 EndLayout On a coordinate plane, a piecewise function is comprised of a line and curve. The line starts at open circle (negative 2, 0) and goes toward (negative 4, 4). A curve starts at closed circle (negative 2, negative 8) and goes through open circle at (0, 0). The curve continues through (4, 2). On a coordinate plane, a piecewise function is comprised of 2 lines and a curve. A line starts at a closed circle at (negative 2, 0) and goes through (negative 4, 2). A curve starts at an open circle at (negative 2, negative 4) and curves to an open circle at (0, 0). From the open circle at (0, 0), a line goes through (4, 4). On a coordinate plane, a piecewise function is comprised of 2 curves and a line. A curve starts at closed circle (negative 2, 0) and curves up through (negative 3, 1). A line starts at open circle (negative 2, negative 2) and goes to closed circle (0, 0). A curve starts at closed circle (0, 0) and increases through (1, 1).
Answers
The graph that represents the piecewise function, g(x) is the option;
On a coordinate plane, a piecewise function is comprised of 2 lines and a curve. A line starts at a closed circle at (-2, 0), and goes through (-4, 2). A curve starts at an open circle at (-2, -4), and curves to an open circle at (0, 0). From the open circle at (0, 0), a line goes through (4, 4).How can the correct graph be found from the descriptions?The piecewise function is presented as follows;
g(x) = -x - 2; x ≤ -2g(x) = -x²; -2 < x < 0g(x) = x; x > 0The graph that represents can be found as follows;
Characteristics of the correct graph
There are two lines and a curve The graph starts with a closed circle at (-2, 0)Slope of the line -x - 2 is -1, therefore as x-values reduces the y-values increases by the same amount, which corresponds with the points (-2, 0), and (-4, 2).
Therefore;
The line -x - 2, goes through (-2, 0), and (-4, 2)The points (-2, -4), and (0, 0) corresponds with a points on the curve g(x) = -x².
Therefore;
The curve starts at (-2, -4) and goes through (0, 0) having open circles at both points.The points (0, 0), and (4, 4), corresponds with points on the line g(x) = x
Therefore;
From the open circle at (0, 0) a line goes through the point (4, 4)The correct option is therefore;
On a coordinate plane, a piecewise function is comprised of 2 lines and a curve. A line starts at a closed circle at (-2, 0), and goes through (-4, 2). A curve starts at an open circle at (-2, -4), and curves to an open circle at (0, 0). From the open circle at (0, 0), a line goes through (4, 4).Learn more about the graphs of functions here:
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Answer:
the answer is b
Step-by-step explanation:
Compare the values of the digit 8 in the number 6,084 and in the number 9,821
Answers
Answer:
Step-by-step explanation:
The eight in 6,084 is in the tenths place. Separately, it would be 80. The 8 in 9,821 is in the hundredths place. This one is worth 800. So the 8 in 9,821 is greater than the 8 in 6,084.
if p = 2-5 and q = 8x3 find 3p-q
Answers
Answer:
3p - q = 3(2-5) - (8x3) = -9 - 24 = -33. Therefore, 3p-q=-33.
Every three minutes, 500 feet of paper is used off of a 6,000 foot -roll to print the pages of a magazine. Write a linear equation that relates the number of feet of paper p that remain on the roll and the number of minutes m the printing press has been operating.
Answers
The linear equation relating the number of feet of paper remaining on the roll (p) and the number of minutes the printing press has been operating (m) is p = 6000 - (500/3)m.
The equation accounts for the fact that every three minutes, 500 feet of paper is used from the 6,000-foot roll.
The term (500/3)m represents the amount of paper used in m minutes. Since 500 feet of paper is used every three minutes, we divide by 3 to get the amount of paper used in one minute. Multiplying this by m gives us the total amount of paper used in m minutes.
Subtracting this amount from the initial length of the roll (6,000 feet) gives us the remaining length of paper (p).
For example, if the printing press has been operating for 10 minutes, we can substitute m = 10 into the equation:
p = 6000 - (500/3) * 10
p = 6000 - (5000/3)
p ≈ 4500 feet.
This means that after 10 minutes of operation, approximately 4,500 feet of paper remain on the roll.
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If cos (A+B) = cosAcos B – sinAsin B , find the value of cos 75
Answers
Answer:
Step-by-step explanation:
Cos 75 = Cos ( 30 + 45) {Use Cos (A + B) identity}
= Cos 30*cos 45 - Sin 30 Sin 45
\(= \frac{\sqrt{3}}{2}*\frac{1}{\sqrt{2}}-\frac{1}{2}*\frac{1}{\sqrt{2}}\\\\= \frac{\sqrt{3}}{2\sqrt{2}}-\frac{1}{2\sqrt{2}}\\\\=\frac{\sqrt{3}-1}{2\sqrt{2}}\\\\=\frac{(\sqrt{3}-1)*\sqrt{2}}{2\sqrt{2}*\sqrt{2}}\\\\=\frac{\sqrt{3}*\sqrt{2}-\sqrt{2}}{2*2}\\\\=\frac{\sqrt{6}-\sqrt{2}}{4}\)
Seema read 511 of the book during weekday and the ret of the
book he planned to read during the weekend. What part of the book
i left for reading during the weekend?
Answers
Seema left 6/11 of the book for reading over the weekend.
To calculate the part of the book left for reading during the weekend, we need to subtract the part of the book Seema read during the weekday from the total book.
If Seema reads 5/11 of the book during the weekday, then:
11 - 5 = 6This means 6/11 of the book is left for reading during the weekend. It is important to note that the fraction of the book read during the weekday and the fraction left for reading during the weekend add up to the total book. This means that 11/11 of the book will be read by Seema in total.
This question should be written as:
Seema reads 5/11 of the book during weekday and the rest of the book she planned to reads during the weekend. What part of the book is left for reading during the weekend?Learn more about Mike has read 2/4 book here: brainly.com/question/23514329
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HW 3: Problem 9 Previous Problem List Next (1 point) Suppose that X is normally distributed with mean 110 and standard deviation 21. A. What is the probability that X is greater than 145.28? Probabili
Answers
The probability that X is greater than 145.28 is approximately 0.0465.
Given that X is normally distributed with mean (μ) of 110 and standard deviation (σ) of 21. We are to find the probability that X is greater than 145.28. It can be calculated as follows: We can calculate the Z-score value with the help of the following formula, Z = (X - μ) / σWhere X is the random variable value, μ is the mean, and σ is the standard deviation. Substituting the values in the formula, we get: Z = (145.28 - 110) / 21Z = 1.68476 Using the Z-table, we can find the probability that X is greater than 145.28 as follows: From the Z-table, we get: P(Z > 1.68) = 0.0465
Probability refers to potential. A random event's occurrence is the subject of this area of mathematics. The range of the value is 0 to 1. Mathematics has incorporated probability to forecast the likelihood of various events. The degree to which something is likely to happen is basically what probability means. You will understand the potential outcomes for a random experiment using this fundamental theory of probability, which is also applied to the probability distribution. Knowing the total number of outcomes is necessary before we can calculate the likelihood that a specific event will occur.
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What is the slope of the line perpendicular to the line y = 3x+1
Answers
Answer:
-1/3
Step-by-step explanation:
Answer:
-1/3
Step-by-step explanation:
to find perpendicular you need to reverse the slope
Patti got a new part-time job. Her hourly wage increased from $10.00 to $12.30. What was the percent increase in Patti's hourly wage
Answers
The percent increase in Patti's hourly wage is 23%.
What was the percent increase in Patti's hourly wage?Percent increase is aimply the amount of increase from the initial value to the new value in terms of 100 parts of the initial value.
It is expressed as:
percent increase = ((new value - old value) / old value) × 100%
Given that, the old hourly wage was $10.00 and the new hourly wage is $12.30.
Substituting the values into the formula, we get:
percent increase = ((new value - old value) / old value) × 100%
percent increase = (($12.30 - $10.00) / $10.00) × 100%
percent increase = ($2.30 / $10.00) × 100%
percent increase = 0.23 × 100%
percent increase = 23%
Therefore, the percent increase is 23%.
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Which of the following shows the difference in the amount of liquid that both bottles hold rounded to the nearest tenth?
Answers
Answer: A
Step-by-step explanation:
What is the inverse of the following conditional?If the tugboat captain isn't trustworthy, the company will need to replace him.A) If the tugboat captain is trustworthy, then the company won't need to replace him.B) If the company will need to replace him, then the tugboat captain isn't trustworthy.C) If the company won't need to replace him, then the tugboat captain is trustworthy.
Answers
The Solution:
Given the conditional statement below:
''If the tugboat captain isn't trustworthy, the company will need to replace him.''
We are required to identify the inverse of the above statement in the given options.
The inverse of the statement is:
''If the tugboat captain is trustworthy, then the company won't need to replace him.''
So, The correct answer is [option A]
THE PRESENT AGE OF A FATHER IS THREE TIMES THAN THAT OF HIS SON. FIVE YEARS AGO HE WAS FIVE TIMES AS OLD AS HIS SON. FIND THEIR PRESENT AGES.
(STEP BY STEP PLZ) (HOPE U ENJOY IT)
Answers
Answer:
Pls See the photo
Step-by-step explanation:
Hope u like it
Answer:
His son is 10 and his father is 30.
Step-by-step explanation:
Let the age of his son be x and his father's age be 3x.
5(x-5) = 3x-5
5x-25 = 3x-5
5x-3x = 25-5
2x = 20
x = 10
3x = 10 × 3
= 30
At Smith Mountain Lake Boat Rentals, it cost $25 per hour to rent a pontoon boat, plus a one-time charge for cleaning. The Bengal family rented a boat from 11 am - 6:30 pm and paid $226.50. If the Jones family rented a boat from 8 am- 1pm, how much did the pay?
Answers
Answer: $164
Step-by-step explanation:
25*7=175
175+12.5
226.50-187.50
5*25=125+39
Jones family payed $164
Let C be the event that a student received a grade of B or better in Calculus I and let S be event that a student received a grade of A in Statistics I. Which of the following denotes the probability that a student received an A in statistics given that the student received less than a B grade in Calculus I.
a. P(S'|C')
b. P(CIS)
c. P(SIC)
d. P(SIC)
Answers
The probability that a student received an A in Statistics I given that the student received less than a B grade in Calculus I can be denoted as P(S|C'). The correct option is (a) P(S'|C').
To represent the probability that a student received an A in Statistics I given that the student received less than a B grade in Calculus I, we need to consider the complement of the events.
The complement of event C (grade of B or better in Calculus I) is C' (grade less than B in Calculus I). Similarly, the complement of event S (grade of A in Statistics I) is S' (grade other than A in Statistics I).
Therefore, the probability that a student received an A in Statistics I given that the student received less than a B grade in Calculus I is denoted as P(S|C'). This notation indicates the conditional probability of event S occurring given that event C' has occurred.
Among the given options, (a) P(S'|C') correctly represents the desired probability. Option (b) P(CIS) represents the joint probability of events C, I, and S, which is not relevant to the given question.
Option (c) P(SIC) represents the joint probability of events S, I, and C, which is also not relevant. Option (d) P(SIC) is a duplicate of option (c) and does not represent the desired probability.
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