Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a trader with no current position in crude palm oi

A trader with no current position in crude palm oil (CPO) is bullish about CPO...

60.1K

Verified Solution

Question

Finance

A trader with no current position in crude palm oil (CPO) is bullish about CPO spot and futures prices over the next months. He believes CPO prices will go up and wishes to profit from his expectation. He observes that the next-month CPO futures is quoted at RM4800 per ton. What would be his speculative strategy? Suppose the price of the same CPO futures contract unexpectedly falls to RM4650 per ton, calculate the profit or loss on his futures position per contract.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Talking with a scheduler, review construction schedule and answer the following questions: How log did it take...

Civil Engineering
Q

What is ethnicity? Explain

Psychology
Q

A sample of ideal gas is placed inside a balloon at room temperature. The balloon is...

Physics
Q

The unit impulse of a system (which isn't necessarily 2nd order) is shown in the...

Electrical Engineering
Q

1)   Theories have an important place in psychology. We can understand better ourselves and others behaviors...

Psychology
Q

During the evolution of plants they moved from a watery environment to a terrestrial land...

Biology
Q

You are given a nichrome wire rheosta t 6V battery and ammeter a Draw a...

Physics
Q

B If DE 16x 3 EF 9x 11 and DF 52 find HG E D...

Basic Math
Q

Solve 9e7x 17 Round your answer to the nearest tenth Do not include x in...

Calculus
Q

104 If lim f x 4 and lim g x 5 find lim 2f x...

Calculus
Q

Calculate the overhead rate based on direct labor cost.

Accounting
Q

TThomas, Inc uses activity-based costing. The company produces two products, 001 and 002. Information relating...

Accounting