Determining the effective price, Finance Basics

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Determining the effective price

On April 1 the price of gold is $1000 and the December futures price is $1,015. On November 1 the price of gold is $980 and the December futures price is $981. A gold producer entered into a December futures contracts on April 1 to hedge the sale of gold on November 1. It closed out its position on November 1. After taking account of the cost of hedging, what is the effective price received by the company for the gold?

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Finance Basics: Determining the effective price

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Finance Basics: Determining the effective price

Reference No:- TGS041808

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Determining the effective price

Reference No:- TGS041808

Recent Questions Asked Finance Basics

Q : Draw supply-demand diagram illustrating changes in market

Q : Establishment of a new subsidiary

Q : Calculate cost of goods sold for april 2009

Q : Difference in total interest

Q : Determining the effective price

Q : Macaulay duration

Q : Determine how many units were started and completed

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Q : Determining the optimal amount of capital

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