Y8 15. You are a candy manufacturer, specializing in chocolatetoffee (yum!). You have just received an order which requiresthe purchase of 130 tons of cocoa over six months. What wasthe total cost of delivery, assuming no hedge? Relevantcontract specs for cocoa are:Close Price/ton Number of Contract size Tic Size Tic ValueContractsSpot US$2668Dec'20 US$2641Mar'21 US$2623May'21US$2611Jul 21US$2602433310 tons10 tons10 tons10 tons$1/ton US$10.00$1/ton US$10.00$1/ton US$10.00$1/ton US$10.00

Total cocoa required = 130 tonsContract available = (4 + 3 + 3 + 3) x 10 = 130 tonsPrices are…

15. You are a candy manufacturer, specializing in chocolate toffee (yum!). You have just received an order which requires the purchase of 130 tons of cocoa over six months. What was the total cost of delivery, assuming no hedge? Relevant contract specs for cocoa are: Spot Dec'20 Mar 21 May'21 Jul'21 Close Price/ton Number of Contract size Tic Size Tic Value Contracts US$2668 US$2641 US$2623 US$2611 US$2602 4 3 3 3 10 tons 10 tons 10 tons 10 tons $1/ton US$10.00 $1/ton US$10.00 $1/ton US$10.00 $1/ton US$10.00

15. You are a candy manufacturer, specializing in chocolate toffee (yum!). You have just received an order which requires the purchase of 130 tons of cocoa over six months. What was the total cost of delivery, assuming no hedge? Relevant contract specs for cocoa are: Spot Dec'20 Mar 21 May'21 Jul'21 Close Price/ton Number of Contract size Tic Size Tic Value Contracts US$2668 US$2641 US$2623 US$2611 US$2602 4 3 3 3 10 tons 10 tons 10 tons 10 tons $1/ton US$10.00 $1/ton US$10.00 $1/ton US$10.00 $1/ton US$10.00

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 10MC

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