Business, 15.04.2021 20:30 skent1423

A company will buy 1000 units of a certain commodity in one year. It decides to hedge 80% of its exposure using futures contracts. Spot price and futures price are currently $100 and $90. The one year futures price of the commodity is $90. If the spot price and the futures price in one year turn out to be $112 and $110, respectively. What is the weighted average price paid for the commodity? A. $92 B. $96 C. $102 D. $106 Group of answer choices

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A company will buy 1000 units of a certain commodity in one year. It decides to hedge 80% of its exp...

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