Answered

Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Connect with professionals ready to provide precise answers to your questions on our comprehensive Q&A platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

the t-shirt factory purchased 12 futures contracts on cotton at a quoted price of 55.50 as a hedge against its inventory needs. at the time it actually needed the cotton, the spot price was 56.10. cotton futures are based on 50,000 pounds and quoted in cents per pound. how much did the shirt factory save by hedging cotton?

Sagot :

We appreciate your time. Please come back anytime for the latest information and answers to your questions. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.