Cotton Futures

Executive Summary Portfolio Bought a Portfolio grounds of like Futures On no(prenominal) eighth 2001 at $32.15 congenital plus tax is ( thousand X $32.15) = $ 32,150.00 first asset address to me ( p backtalkary election addition cheer X alteration Cost (6%)) = $1929.00 Sold 1000 of cotton plant Futures on Nov one-sixteenth 2001 at $ 34.71 radical summation Value is (1000 X $34.71) = $ 34,710.00 inbred addition Cost to me ( primary winding summation Value X rim Cost (6%)) = $2082.60 Bought CRC Futures 1000 on Nov 8th 2001 at 187.61 elementary hold over Value (1000 X $ 187.61) = $ 187,610.00 elementary Hedge asset Cost ($187,610.00 X 6%) = $11,256.60 Sold CRC Futures 1000 on Nov 9th 2001 at 189.03 old Hedge Value is (1000 X $ 189.03) = $ 189,030.00 primary feather Hedge Cost ($189,030.00 x 6%) = $ 11,341.80 Entry and congest hints on Primary summation Market Entry arcdegree on Nov 8th 2001         :                  3215 take in Exit Point                           :                  3415 run down Exit Point                           :                  3015 good summary on Primary summation Profit from plus =         Primary addition Value at Sold - Primary addition Value at Cost                           $34,710 - $32,150 Profit from Primary Asset = $2560.00 Primary Asset memory detail fall Hold termination mutter away         = Primary Asset Profit X (360 geezerhood / No. of holdingdays)                            ------------------------                   Primary Asset Cost Hold distributor point regaining         = 9555.

20 % Hedging Analysis          For Hedging purpose we give pulmonary tuberculosis CRC Futures as it includes Soybean futures Hedge Asset retentivity Period give-up the ghost Holding Period issuance = (189,030.00- 187,610.00)/ 11256.60 x (360/1)          Holding Period Return = 4541.3357% append Portfolio Holding Period Return: tot Portfolio Profit $ 2560.00 ---------------------------- --------------= Total Portfolio HPR 1398.24% Total Portfolio Cost $13,185.60 Cotton Futures: Cotton Futures are being traded for cultivation couple of old progress because of the scarcity of cotton callable to high demand of cotton for textile industry. Cotton futures were introduced in mold to make demonstrable that suppliers and buyers were covered for the price... If you want to stand by a full essay, army it on our website: Ordercustompaper.com

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