Question

J-Rata Corp can supply 50,000 metric tons (MT) of crude palm oil (CPO) to L-Brothers on...

  1. J-Rata Corp can supply 50,000 metric tons (MT) of crude palm oil (CPO) to L-Brothers on 15th March 2021. The current CPO price is RM3400 per MT. It is expected that the CPO could be trading at RM2700 per MT on 15th March 2021. The FCPO (CPO Futures) is currently trading at RM3450 per MT. Each FCPO contract is 25 MTs.  If the FCPO is trading at RM2100 per MT on 15th March 2021, calculate the net sales revenue of J-Rata Corp in this supply transaction if it decides to hedge by using FCPO contracts.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Unioil produces vegetable based cooking oil and butter spreads. Unioil uses large quantities of crude palm...
Unioil produces vegetable based cooking oil and butter spreads. Unioil uses large quantities of crude palm oil (CPO)in its production process as a main raw material. It is September 2020 now and Unioil estimates a need of 25,000 metric tons (MTs)of CPO in March 2021. Current spot price of CPO is RM2200 per MT. You as the procurement manager of Unioil, have the following alternatives to hedge the possible increase in the CPO price by March 2021: The commodities analysist...
Question 3 (20 marks) Unioil produces vegetable based cooking oil and butter spreads. Unioil uses large...
Question 3 Unioil produces vegetable based cooking oil and butter spreads. Unioil uses large quantities of crude palm oil (CPO)in its production process as a main raw material. It is September 2020 now and Unioil estimates a need of 25,000 metric tons (MTs)of CPO in March 2021. Current spot price of CPO is RM2200 per MT. You as the procurement manager of Unioil, have the following alternatives to hedge the possible increase in the CPO price by March 2021: The...
1) Nestles company plans to purchase 750 metric tons of cocoa in six month. Nestles fears...
1) Nestles company plans to purchase 750 metric tons of cocoa in six month. Nestles fears that the price of cocoa will increase before they acquire the cocoa. Nestles wants to lock in the price it will pay for cocoa. Cocoa futures contract is traded at the New York Board of Trade. Each contract is for 10 metric tons of cocoa. Cocoa currently is at $3,700 per ton. Cocoa futures price with six months to expiration is $3,740 per ton....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT