Answer:
0.9; 100 million; 90 million; 2,143
Explanation:
The new fuel's price change has a standard deviation that is 50% greater than price changes in gasoline futures prices.
So, if standard deviation of future prices is taken as '1' then for spot price it will be 50% higher, i.e 1.5
The hedge ratio:
= Correlation × (standard deviation of spot price ÷ Standard deviation of future prices)
= 0.6 × (1.5 ÷ 1)
= 0.9
The company has an exposure of 100 million gallons of the new fuel.
Gallons in future gasoline:
= Hedge ratio × 100 million gallons of the new fuel
= 0.9 × 100
= 90 million
Each contract is on 42,000 gallons, then
Number of gasoline futures contracts should be traded:
= 90,000,000 ÷ 42,000
= 2,142.9 or 2,143
A producer is someone who m<span>akes a commodity available for sale or exchange.</span>
I myself would think that she should be a corrections officer if she enjoys making decisions and finding solutions to problems, is an excellent public speaker, and has a talent for persuading people to take up causes that she supports.
Answer:
$34,900
Explanation:
The computation of the ending balance in the Owner's Capital account is shown below:
= Net income + investment
= $29,200 + $5,700
= $34,900
The another method is
Stockholder equity = Total assets - total liabilities
where,
Total assets = Cash + Office supplies + accounts receivable
= $20,800 + $2,700 + $11,400
= $34,900
And, the total liabilities is zero
Now put these values to the above formula
So, the value would equal to
= $34,900 - $0
= $34,900
