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Author Question: To hedge the price risk associated with one of its major inputs, Binford Homes uses lumber futures ... (Read 66 times)

panfilo

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on: Apr 25, 2021
To hedge the price risk associated with one of its major inputs, Binford Homes uses lumber futures contracts which trade on the Chicago Mercantile Exchange (CME). The CME Random Length Lumber futures contract calls for delivery of 110,000 board feet (110 MBF, 1 MBF is 1,000 board feet of lumber) of random length 8-foot to 20-foot pieces. Primarily, the deliverable species are Western Spruce, Pine or Fir.

What kind of futures position will Binford Homes take in the CME lumber futures contract in order to hedge the price risk it faces?
◦ A long position in lumber futures contracts
◦ A short position in lumber futures contracts
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Marked as best answer by panfilo on Apr 25, 2021

taylorsonier

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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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panfilo

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Reply 2 on: Apr 25, 2021
Excellent

tkempin

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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