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Zarrin [17]
2 years ago
6

On March 1 a commodity's spot price is $60 and its August futures price is $59. On July 1 the spot price is $64 and the August f

utures price is $63.50. A company entered into futures contracts on March 1 to hedge its purchase of the commodity on July 1. It closed out its position on July 1. What is the effective price (after taking account of hedging) paid by the company? a. $55.75 b. $61.20 c. $59.50 d. $46.50
Business
1 answer:
grin007 [14]2 years ago
6 0

Answer:

The correct answer is $59.50.

Explanation:

According to the scenario, the computation of the given data are as follows:

Gain on future price = After future price - before future price

$63.50 - $59

= $4.50

So, we can calculate the effective price paid by the company by using following formula:

Effective price paid = Spot price in July - Gain on future price

= $64 - $4.50

= $59.50

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Which statement characterizes the moral reasoning typically found in a child?
Kobotan [32]

Answer:

The typical moral reasoning found in a child is "I'll let you play with my toy If play with yours",option B

Explanation:

For someone to behave as the Romans,if he finds himself in Rome require some reasonable level of thinking usually found in adults not children.

Typically,children are known to show goodness in return for goodness,hence the option B is a perfect  moral reasoning standpoint known with children.

Utilitarian approach to ethics shared view of greatest good for the greatest number,also this is an advanced level of reasoning.

Respect the right of others is morality from the legal and human right's viewpoint.

7 0
2 years ago
Read 2 more answers
Look at the examples, and then determine which type of advantage each one describes.
lara [203]

Answer:

<span> 1) If a producer can provide cable service more cheaply than another producer, it is an</span> absolute advantage.<span>
2) If a  producer can produce salads while giving up fewer opportunities to make sandwiches than another producer, it is a</span> comparative advantage.

3) If a  producer can create more car parts than another producer does,  using the same number of resources, the price per unit is cheaper and it is an absolute advantage.

Absolute advantage<span> is the ability of a person, a  country, company or region to produce a good or service at a cheaper price per unit than another entity producing the same good or service.</span>

Comparative advantage<span> is the ability of a person, a  country, company or region to produce a specific good or service more efficiently (lower opportunity cost)  than another entity to produce the same good or service.</span>

4 0
2 years ago
Read 2 more answers
When data can flow across a cable in both directions, this is known as _____ communication?
Vlada [557]
I believe the answer is full duplex communication or simply duplex communication. This is a type of communication where both ends of the communication can send and receive signals at the same time. This is different from half duplex communication which is a bidirectional communication but signals can only flow in one direction at a time.
7 0
2 years ago
Rodriguez and Ying start a partnership on July​ 1, 2019. Rodriguez contributes​ $4,100 cash, furniture with a current market val
guapka [62]

Answer:

Explanation:

The journal entry is shown below:

Cash A/c Dr                    $4,100

Equipment A/c Dr           $23,000

Furniture A/c Dr              $47,000

          To Account payable                $16,000      

          To Rodriguez's Capital            $58,100

(Being all adjustments are recorded and the remaining balance is credited to Rodriguez's Capital.

Remaining balance is calculated by

= Cash A/c + Equipment A/c + Furniture A/c - Accounts payable

= $4,100 + $23,000 + $47,000 - $16,000

= $74,100 - $16,000

= $58,100

6 0
2 years ago
Ence Sales, Inc., a merchandising company, reported sales of 6,400 units in April at a selling price of $684 per unit. Cost of g
Kobotan [32]

Answer:

Gross Margin 1,465,600

Explanation:

gross margin: sales - COGS

sales 6,400 units at 684 =   4,377,600

cost of goods sold   455 = (2,912,000)

Gross Margin 1,465,600

<u>The selling and administrative cost are cost of the period,</u> are not capitalized through inventory.

4 0
2 years ago
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