Business
Business, 08.04.2021 18:30, swhorton6

Suppose today is May 1, 2019, and your firm produces breakfast cereal and needs 400,000 bushels of corn in July 2019 for an upcoming promotion. You would like to lock in your costs today because you are concerned that corn prices might rise between now and July. Each contract is for 5,000 bushels; the settle price for July 2019 is $5.18 per bushel. Suppose corn prices are $5.14 per bushel in July 2019. What will your cumulative mark to market be

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Suppose today is May 1, 2019, and your firm produces breakfast cereal and needs 400,000 bushels of c...

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