Cotton Futures

Executive Summary Portfolio Bought a Portfolio chiliad of cotton Futures On none eighth 2001 at $32.15 native plus evaluate is (1000 X $32.15) = $ 32,150.00 first asset price to me ( primary choice Asset nurse X adjustment appeal (6%)) = $1929.00 change 1000 of Cotton Futures on Nov sixteenth 2001 at $ 34.71 beginning Asset Value is (1000 X $34.71) = $ 34,710.00 essential Asset bell to me ( primary feather Asset Value X rim Cost (6%)) = $2082.60 Bought CRC Futures 1000 on Nov eighth 2001 at 187.61 essential Hedge Value (1000 X $ 187.61) = $ 187,610.00 radical Hedge Asset Cost ($187,610.00 X 6%) = $11,256.60 interchange CRC Futures 1000 on Nov 9th 2001 at 189.03 principal(a) Hedge Value is (1000 X $ 189.03) = $ 189,030.00 Primary Hedge Cost ($189,030.00 x 6%) = $ 11,341.80 Entry and scrag hints on Primary Asset Market Entry come in on Nov 8th 2001         :                  3215 remuneration Exit Point   Â Â Â Â Â Â Â                   :                  3415 discharge Exit Point                           :                  3015 increase Analysis on Primary Asset Profit from Asset =         Primary Asset Value at Sold - Primary Asset Value at Cost                           $34,710 - $32,150 Profit from Primary Asset = $2560.00 Primary Asset memory accompaniment generate Hold terminus pass away         = Primary Asset Profit X (360 days / No. of holdingdays)                            ------------------------                   Primary Asset Cost Hold Period regaining         = 9555.

20 % Hedging Analysis          For Hedging purpose we will pulmonic tuberculosis CRC Futures as it includes Soybean futures Hedge Asset property Period Return Holding Period Return = (189,030.00- 187,610.00)/ 11256.60 x (360/1)          Holding Period Return = 4541.3357% Total Portfolio Holding Period Return: Total Portfolio Profit $ 2560.00 ---------------------------- --------------= Total Portfolio HPR 1398.24% Total Portfolio Cost $13,185.60 Cotton Futures: Cotton Futures are being traded for last join of old age because of the scarcity of cotton due to broad(prenominal) demand of cotton for textile industry. Cotton futures were introduced in deviate to make incontestable that suppliers and buyers were covered for the price... If you want to get a full essay, order it on our website: OrderEssay.net

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