Mathematics, 23.10.2019 00:00, dedgefield

The standard deviation of monthly changes in the spot price of live cattle is (in cents per pound) 1.2. the standard deviation of monthly changes in the futures price of live cattle for the closest contract is 1.4. the correlation between the futures price changes and the spot price changes is 0.7. it is now october 15. a beef producer is committed to purchasing 200,000 pounds of live cattle on november 15. the producer wants to use the december live cattle futures contracts to hedge its risk. each contract is for the delivery of 40,000 pounds of cattle. what strategy should the beef producer follow?

Answers: 2

Show answers

Other questions on the subject: Mathematics

Mathematics, 21.06.2019 14:00, holaadios222lol

Which expression is equivalent to? assume x > 0 and y > 0.

Answers: 1

continue

Mathematics, 21.06.2019 18:00, sbailey0962

Sarah used her calculator to find sin 125 degrees. she wrote down sin sin125 degrees.57. how could sarah recognize that her answer is incorrect?

Answers: 1

continue

Mathematics, 22.06.2019 00:30, sanfordl

1. according to the internal revenue service, the mean tax refund for the year 2007 was $2,708. assume the standard deviation is $650 and that the amounts refunded follow a normal probability distribution. a. what percent of the refunds are more than $3,000? b. what percent of the refunds are more than $3,000 but less than $4,000? c. what percent of the refunds are less than $2,000?

Answers: 2

continue

Mathematics, 22.06.2019 01:00, dyllanmasters99

Determine the intercepts of the line that passes through the following points. (15,-3)(15,−3) (20,-5)(20,−5) (25,-7)(25,−7)

Answers: 1

continue

Do you know the correct answer?

The standard deviation of monthly changes in the spot price of live cattle is (in cents per pound) 1...