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Bad White [126]
3 years ago
8

A trader sold short a cotton futures contract @ 76.12 cents per pound. The contract size is 50,000 pounds. How much does the tra

der gain or lose in DOLLARS if he closed out his contract when the futures price is 72.41 cents per pound? Keep zero decimal points. If it is a loss, please enter a negative number.
Business
1 answer:
vladimir2022 [97]3 years ago
7 0

Answer:

Gain of  $1,855    

Explanation:

Data provided in the question:

Actual Selling price = 76.12 cents per pound = $0.7612 per pound

Price at the closing = 72.41 cents per pound = $0.7241 per pound

The size of the contract = 50,000

Now,

The gain or loss = (Actual selling price - Price at closing ) × size of contract

= ( $0.7612 - $0.7241 ) × 50,000

= 0.0371 × 50,000

= $1,855          [positive value mean gain ]

Hence,

Gain of  $1,855    

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Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019:
STALIN [3.7K]

Answer:

Crenshaw, Inc.

Cash Budget for the months of April, May, and June:

                                                               April            May           June

Beginning cash balance                  $109,000   $325,000      $419,950

Cash receipts                                     140,700       122,850         153,650

Cash collections from credit sales   197,400        241,200        210,600

Total cash available                        $447,100     $689,050      $784,200

Cash disbursements:

Wages,  taxes, and expenses            79,700          75,200         103,900

Interest                                                9,400             9,400            9,400

Equipment purchases                      33,000             5,500         147,000

Purchases of goods                                               179,000         167,000

Total cash disbursements               122,100         269,100        427,300

Ending balance                            $325,000       $419,950     $356,900

Explanation:

a) Data and Calculations:

Budget for the second quarter of 2019:

                                             April           May             June

Credit sales                    $402,000    $351,000    $439,000

Credit purchases              179,000       167,000      200,000

Cash disbursements:

Wages,  taxes, ^ expenses 79,700        75,200       103,900

Interest                                 9,400          9,400           9,400

Equipment purchases       33,000          5,500       147,000

Predictions:

Uncollectibles                    20,100          17,550          21,950

Collections                       381,900       333,450        417,050

Total credit sales         $402,000      $351,000    $439,000

Cash Collections:

Month of sales 35%       140,700         122,850       153,650

Following month  60%  197,400         241,200       210,600

Total cash collections   338,100        364,050       364,250

4 0
3 years ago
The WCU maintenance department used 850 brackets during the course of a year. The brackets are purchased from a supplier in Ashe
Finger [1]

Answer:

a. 166 units should be ordererd of brackets

b. They have when they should place a new order with the supplier 10 brackets

Explanation:

According to the given data we have the following:

Annual Demand= 850 brackets

Buying cost=$10

carrying cost=13%×$10=$1.30

ordering cost per order=$21

a. To calculate how many brackets should be ordered when WCU places an order with their supplier we have to calculate the EOQ as follows:

EOQ=√<u>2AO</u>

              C

EOQ=√<u>2×850×21</u>

               1-30

EOQ=166 Units

166 units should be ordererd of brackets

b. To calculate how many brackets do they have when they should place a new order with the supplier we would habe to make the following calculation:

Reorder point=<u>Annual Demand     </u>    ×  lead time

                        working days in year

Reorder point=<u>850  × </u>  3

                         250

=10 brackets

They have when they should place a new order with the supplier 10 brackets

8 0
3 years ago
Which of the following goals does the government pursue in a socialist economic system
kumpel [21]

Answer:Equity

Explanation:

8 0
3 years ago
Although the Chen Company's milling machine is old, it is still in relatively good working order and would last for another 10 y
lora16 [44]

Answer:

Chen should buy the new machine since it produces a positive NPV of  $1,294

Explanation:

Summary of the Project Cash Flows is as follows :

Year 0                                  = ($120,000)

Year 1 to Year 10                 =    $18,900

The Project cost of capital = 9%

Calculation of the Project`s NPV :

<em>NPV can be calculated from this summary using a financial calculator as :</em>

<em>CF0 = ($120,000)</em>

<em>CF1  = $18,900</em>

<em>Nj     = 10</em>

<em>i       = 9 %</em>

<em>NPV =  ? </em>

<em>NPV = $1,293.73 or $1,294</em>

The Project is accepted only if it has a Positive NPV

Conclusion,

Chen should buy the new machine since it produces a positive NPV of  $1,294.

5 0
3 years ago
If GDP is expected to increase at a steady rate of 3% per year, how many years would it take for living standards to double
Troyanec [42]

Answer:

24 years

Explanation:

In a situation where a country GDP which is fully known as GROSS DOMESTIC PRODUCT was been expected to increase or grow at a rate of 3% per year or per annual which means that it will actually takes up to 24 years for a country economy living standard to double .

Therefore the numbers of years it would take for a country living standards to double will be 23 years.

5 0
3 years ago
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