Solved: What are the farmers net proceeds when corn is sold, Finance Basics

+44 141 628 6080
[email protected]

What are the farmers net proceeds when corn is sold

Problem:

A farmer enters into a short corn futures contract at a price of $2.80 per bushel. The spot price of corn drops to $2.65 when the contract expires and the farmer delivers her corn.

If the farmer harvested 13,000 bushels of corn and had futures contracts on 10,000 bushels of corn, what are the farmer's net proceeds when corn is sold?

Solution Preview :

Prepared by a verified Expert

Finance Basics: What are the farmers net proceeds when corn is sold

Reference No:- TGS02061893

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : What is the market value of one contract

The contract size is 50,000 lbs. What is the market value of one contract?

Q : What price change would lead to a margin call

What price change would lead to a margin call? Under what circumstances could $2,000 be withdrawn from the margin account?

Q : Expected cash settlement price of the futures contract

What is the expected cash settlement price of the futures contract as expiration if the fed cut the fed funds rates by -50bps in December 2007;

Q : Discuss the legitimacy and political movements

Comparison should include the rationale for choosing these countries and cases - what have you learned from this comparison, what did you expect to find?

Q : What are the farmers net proceeds when corn is sold

If the farmer harvested 13,000 bushels of corn and had futures contracts on 10,000 bushels of corn, what are the farmer's net proceeds when corn is sold?

Q : Explain the declaration of independence signifies to america

Give an explanation of what the Declaration of Independence signifies to America.

Q : What is the value of your investment after one year

a) What is the value of your investment after one year b) What is the value of your investment after two years

Q : Describe stock index futures

Describe stock index futures. How could they be used by a financial institution that is anticipating a jump in stock prices

Q : What is a real meaning of democracy and freedom

"What freedom and democracy mean to you". The scenery is a Cuban student who left Cuba because in Cuba there is no democracy and freedom.

1938882

Questions
Asked

3,689

Active Tutors

1459790

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

How sociological models help understand mental illness

Based on the chapter by Allen Furr on the sociology of mental illness, How do sociological models help you understand mental illness differently

Symbolic interactionism took off as a theoretical approach

Question: Symbolic interactionism took off as a theoretical approach to the study of deviance during the 1960s

How are schools important in the struggle for power

Question: How are schools important in the struggle for power and status?

Which is a criticism of marxist/conflict theories

Question: Which of the following is a criticism of Marxist/conflict theories? Group of answer choices

Why does victor coin the term hyper-violence

Why does victor coin the term hyper-violence instead of just using violence? And second, how is hyper-violence display in the Oakland community?

Which of the things happened first

Which of the following things happened first? Group of answer choices Women gained the right to vote Seneca Falls Convention Margaret

Which are forms of media bias

Question: Which of the following are forms of media bias? (Select all that apply)