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uranmaximum [27]
3 years ago
8

Farmer Brown grows Number 1 red corn and would like to hedge the value of the coming harvest. However, the futures contract is t

raded on the Number 2 yellow grade of corn. Suppose that yellow corn typically sells for 90% of the price of red corn. If he grows 180,000 bushels, and each futures contract calls for delivery of 5,000 bushels, how many contracts should Farmer Brown buy or sell to hedge his position
Business
1 answer:
beks73 [17]3 years ago
4 0

Answer:

40 contracts

Explanation:

Calculation to determine how many contracts should Farmer Brown buy or sell to hedge his position

First step is to calculate how much The farmer must sell forward

Farmer must sell forward=180,000∗(1/0.90)

Farmer must sell forward= 200,000bushels of yellow corn.

Now let calculate the requires selling

Requires selling=200,000/ 5,000 bushels

Requires selling =40 contracts.

Therefore how many contracts should Farmer Brown buy or sell to hedge his position is 40 contracts.

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Copy equipment was acquired at the beginning of the year at a cost of $36,600 that has an estimated residual value of $3,300 and
jeka57 [31]

Answer:

a. $33,300

b. $0.03 per copy

c. $7,560

Explanation:

Units of Output = (Cost - Residual Value) × ( Period`s Production / Total Expected Production)

Depreciable Cost = Cost - Residual Value

                             = $36,600 - $3,300

                             = $33,300

Depreciation Rate = Depreciable cost ÷ Expected Production

                              = $33,300 ÷ 1,110,000 copies

                              = $0.03 per copy

Depreciation for the year = Depreciation Rate × Period`s Production

                                            = $0.03 × 252,000 copies

                                            = $7,560

8 0
3 years ago
William Ackman is a hedge fund manager who owned a large share of J.C. Penney stock. He was also a member of the J.C. Penney boa
Ksju [112]

Answer:

The capital market stakeholders and organisational stakeholders.

Explanation:

In this scenario William Ackman owned a large share of J.C. Penney stock, and also a member of the J.C. Penney board.

He had disclosed information about the company which was in breach of his boardroom duties.

There is a conflict for William in his roles as a capital market shareholder and a organisational stakeholders.

As a shareholder he has the freedom to disclose information about the company, but as a organisational stakeholders his obligation is to protect the company by not disclosing information about the CEO search and financial condition of the company.

7 0
3 years ago
Full-service banks are authorized to conduct business without a license granted by the federal or state government.
mixas84 [53]

Answer:

B

Explanation:

(c) Any person who engages in the business of money transmission without a license as provided herein shall be guilty of a felony and, on conviction thereof, shall be fined not more than $25,000, or imprisoned for not more than 5 years, or both. (July 18, 2000, D.C. Law 13-140, § 24, 47 DCR 3431.) § 26–1024. Promulgation of rules.

I hope this helped.

7 0
3 years ago
You are a manager in a supermarket. One evening, you hear raised voices and see Chuck shouting at a customer, "I’m not going to
shusha [124]

Answer:

punishment

Explanation:

Basically, the manager is trying to change the behavior of his employee, Chuck. In management and organizational psychology, that is often referred to as the <em>reinforcement theory of motivation</em>.

In this example, the manager uses remuneration punishment in order to alter Chuck's noted behavior pattern.

<u>NOTE </u>- This is not to be confused with <em>negative reinforcement</em>, which is also related to the reinforcement theory. Although the term <em>negative </em>may imply some similarities with punishment, negative reinforcement is a different concept. While punishment is directly weakening the <em>unwanted </em>behavior, negative reinforcement is strengthening a <em>desired </em>behavior, by means of removing an unwanted consequence <u>for the employee</u> when he follows the wanted behavior pattern.

For example, a form of negative reinforcement would be if Chuck knew upfront that his pay would be reduced if he yelled at his customers and he avoided yelling in the first place because of that.

3 0
3 years ago
_____ is a method whereby a shareholder elects a representative, commonly another individual or a written document, through whic
Talja [164]

Answer:

jh2h2hg2y3yy3y3

Explanation:

hwheheuu2u2u

6 0
3 years ago
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