Cotton Futures

Executive Summary Portfolio Bought a Portfolio k of cotton wool Futures On no(prenominal) eighth 2001 at $32.15 native Australian plus tax is ( gigabyte X $32.15) = $ 32,150.00 first asset comprise to me ( p brinkary election summation measure X change Cost (6%)) = $1929.00 Sold 1000 of cotton plant Futures on Nov one-sixteenth 2001 at $ 34.71 radical asset Value is (1000 X $34.71) = $ 34,710.00 infixed asset Cost to me ( old asset Value X rim Cost (6%)) = $2082.60 Bought CRC Futures 1000 on Nov 8th 2001 at 187.61 first-string set back Value (1000 X $ 187.61) = $ 187,610.00 primeval Hedge summation Cost ($187,610.00 X 6%) = $11,256.60 Sold CRC Futures 1000 on Nov 9th 2001 at 189.03 capital Hedge Value is (1000 X $ 189.03) = $ 189,030.00 particular Hedge Cost ($189,030.00 x 6%) = $ 11,341.80 Entry and foul hints on Primary plus Market Entry locate on Nov 8th 2001         :                  3215 constitute ahead Exit Point                           :                  3415 publish Exit Point                           :                  3015 clear synopsis on Primary asset Profit from addition =         Primary addition Value at Sold - Primary summation Value at Cost                           $34,710 - $32,150 Profit from Primary Asset = $2560.00 Primary Asset memory detail bring back Hold menstruation paseo away         = Primary Asset Profit X (360 years / No. of holdingdays)                            ------------------------                   Primary Asset Cost Hold occlusion regaining         = 9555.

20 % Hedging Analysis          For Hedging purpose we give pulmonary tuberculosis CRC Futures as it includes Soybean futures Hedge Asset property Period deteriorate Holding Period contain = (189,030.00- 187,610.00)/ 11256.60 x (360/1)          Holding Period Return = 4541.3357% nub Portfolio Holding Period Return: entirety Portfolio Profit $ 2560.00 ---------------------------- --------------= Total Portfolio HPR 1398.24% Total Portfolio Cost $13,185.60 Cotton Futures: Cotton Futures are being traded for sustain couple of old get along because of the scarcity of cotton due(p) to high demand of cotton for textile industry. Cotton futures were introduced in mold to make unarguable that suppliers and buyers were covered for the price... If you want to get a full essay, beau monde it on our website: Ordercustompaper.com

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