Question 1
Farmer Jones sold wheat futures contracts at a price of $3 per bushel. She will profit from her futures position if
◦ the futures price goes up.
◦ the futures price goes down.
Question 2
Krusty Burger requires pork for producing its famous Meat-Flavored Sandwich. Frozen Pork Bellies futures contracts trade on the CME. Each contract calls for the delivery of 40,000 lbs. of USDA-inspected Pork Bellies. Krusty requires 40,000lbs on July 10. Today the spot price of pork bellies is $1.177 per pound and the July futures contract is trading for a price of $1.2055/lbs. Assume Krusty enters the appropriate position in July futures contracts to hedge its price risk. On July 10th it buys its pork from local pig farmers at $1.1655/lbs. and closes out the futures position. Unfortunately, the pork bellies futures price had not achieved convergence on the day the position is closed-the futures price is $1.1700 when Krusty Burger closes its position. What is the cost per pound of pork? The purchase cost includes the cumulative profit from the futures transactions.
◦ $1.1255
◦ $1.1655
◦ $1.1770
◦ $1.2010
Approximately 1 pound (0.45 kg) of ground elk meat formed into patties; note the relatively small fa
An orb weaver producing silk from its spinnerets
Theodore Brookhart and Egmont C. Arens, "Streamliner" Meat Slicer, Model 410.
Each of the eight injectors shown are producing a correct spray pattern for the applications. While ...
Soy Meat Analogs
Disitive Time For Meat