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Quiz #3.

Quiz #3. Name and SSN on scan sheets Questions 1-4: calculate the net price as a result of hedging. 1. Long Hedge. Feb. 4 : You plan to buy feeder cattle in May. May futures @ $82.50, Exp. basis is -$1.50 May : Local price is $78.00. May futures @ $78.50 Realized net price paid is:

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Quiz #3.

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  1. Quiz #3. • Name and SSN on scan sheets • Questions 1-4: • calculate the net price as a result of hedging

  2. 1. Long Hedge Feb. 4: You plan to buy feeder cattle in May. May futures @ $82.50, Exp. basis is -$1.50 May: Local price is $78.00. May futures @ $78.50 Realized net price paid is: • $79.50 • $81.00 • None of the above

  3. 2. Long Hedge Feb 4: Elevator needs to buy wheat by July. July futures @ $3.50/bu., Exp. basis is -$0.40 June: Local price is $4.50. July futures @ $5.10 Realized net price paid is: • $3.30 • $2.90 • None of the above

  4. 3. Short Hedge. Feb. 4: Plan to sell 40 fed cattle in June June futures @ $68.00/cwt., Exp. basis is +$1.00. June: Local price is $64.50, June futures @ $65.00 Realized net price received is: • $68.50 • $65.50 • None of the above

  5. 4. Short Hedge. Feb. 4: Plan to sell 5000 bu. wheat in July July futures @ $3.00/bu., Exp. basis is -$0.40. July: Local price is $3.70, July futures @ $4.00 Realized net price received is: • $3.40 • $3.75 • $2.70 • $3.00 • None of the above

  6. 5 • The minimum price change on a cattle futures contract is: a. 2 cents per cwt b. 2½ cents per cwt c. 1 cent per cwt d. $1 per cwt • none of the above

  7. For Quiz #4 Gaelic football

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