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Marizza181 [45]
2 years ago
7

Suppose a farmer is expecting that her crop of oranges will be ready for harvest and sale as 150,000 pounds of orange juice in 3

months time. Suppose each orange juice futures contract is for 15,000 pounds of orange juice, and the current futures price is F_0 = 118.65 cents-per-pound. Assuming that the farmer has enough cash liquidity to fund any margin calls, what is the risk-free price that she can guarantee herself. Please submit your answer in cents-per-pound rounded to two decimal places. So for example, if your answer is 123.456123.456, then you should submit an answer of 123.47123.47.
Business
1 answer:
Ber [7]2 years ago
7 0

Answer:

121.30

Explanation:

The future price guarantees the holder of the contract to trade a commodity at a predetermined price at a later date. The farmer has orange crops ready for sale amounting $150,000. The number of contracts required is 150,000 / 15,000 = 10 contracts.  

The spot price is 118.65 cents per pound. The risk free price is the value at which farmer has agreed to sell its crops. The risk free future price will be (1 + spot price)^-time * number of contracts / time

= (1 + 118.65)^-33 * 10 / 33

= 121.30

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Answer:

Part A:

Labur Productivity:

For US=5.14,         LDC=1.35

Capital Productivity:

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Part B:(Multi factor productivity)

For US=1.29         LDC=1.03

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Explanation:

Part A:

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For LDC:

Partial Labor Productivity=\frac{Sale(units)}{Labour(hours} \\Partial Labor Productivity=\frac{19600}{14550} \\Partial Labor Productivity=1.35

Capital Productivity:

For US:

Capital Productivity=\frac{Sale(units)}{Capital Equipment} \\Capital Productivity=\frac{100505}{58600}\\Capital Productivity=1.72

For LDC:

Capital Productivity=\frac{Sale(units)}{Capital Equipment} \\Capital Productivity=\frac{19600}{4550}\\Capital Productivity=4.31

Part B:

For US:

Multifactor Productivity=\frac{Sales(units)}{labour(Hours) + Capital Equipment(hours)}\\ Multifactor Productivity=\frac{100505}{19550+58600} \\Multifactor Productivity=1.29

For LDC:

Multifactor Productivity=\frac{Sales(units)}{labour(Hours) + Capital Equipment(hours)}\\ Multifactor Productivity=\frac{19600}{14550+4550} \\Multifactor Productivity=1.03

Part C:

For US:

Raw material productivity=\frac{Sales(Hour)}{Raw Material} \\ Raw material productivity=\frac{100505}{20500} \\ Raw material productivity=4.90

ForLDC:

Converting Raw material FC into $ (1$=10FC)

Raw Material =19550/10=$1955

Raw material productivity=\frac{Sales(Hour)}{Raw Material} \\ Raw material productivity=\frac{19600}{1955} \\ Raw material productivity=10.02

3 0
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If frost in Florida reduces the quantity of vegetables sold by 20 percent and increases their retail price by 30 percent, one ca
Anit [1.1K]

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Furthermore, we can determine easily if the demand is elastic or inelastic, since the question has stated the percentage change in quantity demanded as 20% and the percentage change in price as 30%.

The coefficient of elasticity is calculated as

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Since the coefficient of elasticity is less than 1, then it means demand is inelastic.

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