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dybincka [34]
2 years ago
15

You speculate in crude oil futures. Last month, you purchased ten January futures contracts at a quoted price of 99.91. These co

ntracts are based on 1,000 barrels and quoted in dollars per barrel. Assume the actual price per barrel is $60.20 in January. How much did you gain or lose by hedging your position
Business
2 answers:
solmaris [256]2 years ago
6 0

Answer:

The amount of loss is $397,100 by hedging the position.

Explanation:

This can be calculated using the following equation:

Profit or loss = Number of contract × 1,000 × (Actual price per barrel – Quoted future price)

Since;

Number of contract = 10

Actual price per barrel = $60.20

Quoted future price = 99.91

By substituting the values into the equation above, we have:

Profit or loss = 10 × 1,000 × ($60.20 – $99.91)

                     = 10,000 × ( – 39.71)

Profit or loss = – $397,100

Since the figure is negative, the amount of loss is $397,100 by hedging the position.

shepuryov [24]2 years ago
5 0

Answer:

Loss of $397,100

Explanation:

The price in future contract is $99.91 per barrel, and actual price is $60.20

The loss per barrel  = $99.91 - $60.20 = $39.71

Total loss = 10 contracts * 1000 barrels * loss of $39.71 per barrels =

= 10*1000*$39.71 = $397,100

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Answer:

greater; higher than

Explanation:

Here is the complete question

If the supply of aisle seats equals the supply of middle seats on an airplane, and the demand for aisle seats is _____________ than the demand for middle seats, then the equilibrium price of aisle seats will be ______________ the equilibrium price of middle seats

.a. greater; higher than

b. less; higher than

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Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.

Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied

If the demand for aisle seats exceeds the demand for middle seats, it means that equilibrium price for aisle seat would exceed equilibrium price

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Answer:

The net cash provided by financing activities -$157,600.

Explanation:

Net cash provided by financing activities refers to the difference between the total cash inflows and total cash outflows from the financing activities section of the cash flow staement.

The net cash provided by financing activities can be calculated by preparing a partial cash flow statement as follows:

Concord Corporation

Net Cash Flow Statement (Partial)

As at December 31, 2022

<u>Details                                                                     Amount    </u>

Par value common stock issued for cash             190,000

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Therefore, the net cash provided by financing activities -$157,600.

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What is the cost when someone borrows money from someone else?.
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The cost when someone borrows money from someone else is known as interest.

<h3>What is interest?</h3>

Interest rate is the cost of borrowing. It is the amount the borrower pays the lender for use of their funds. It is usually a function of the amount borrowed, length of the loan and the interest rate.

For example, if a person borrows $1000 for 1 year at an interest rate of 10, the interest that would be paid is: $1000 x 0.1 = $100.

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