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Author Question: Schwabl's restaurant uses wheat to bake its kummelweck buns. It requires 50,000 bushels in 2 months ... (Read 60 times)

bio_gurl

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on: Apr 25, 2021
Schwabl's restaurant uses wheat to bake its kummelweck buns. It requires 50,000 bushels in 2 months on July 10th. The spot price of wheat is $1.0525 per bushel and the July futures contract is trading for a price of $1.068/bu. Each contract is for 5,000 bushels. Assume Schwabl's enters the appropriate position in July wheat futures contracts to hedge its price risk. On July 10th it buys its wheat in the spot market at $1.071/bu and closes out the futures position. Unfortunately, the wheat futures price had not achieved convergence on the day the position was closed-the futures price was $1.07 when Schwabl's closed its position. What was the cost per bushel of wheat? The purchase cost includes the cumulative profit from the futures transactions.
◦ $1.0525/bu
◦ $1.0690/bu
◦ $1.0700/bu
◦ $1.0710/bu
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Marked as best answer by bio_gurl on Apr 25, 2021

jomama

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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bio_gurl

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

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Reply 3 on: Yesterday
Gracias!

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