Accounting of Current Price of March 2021 Corn Assignment
Order ID:89JHGSJE83839 Style:APA/MLA/Harvard/Chicago Pages:5-10 Instructions:
Accounting of Current Price of March 2021 Corn Assignment
Question Description
Accounting We are in early December 2020, and the current price of March 2021 corn futures is $4.25/bu. You manage a small ethanol plant that processes about 2m bushels of corn each month. You buy your main input (corn) on the cash market, and pay for that corn every two months. Precisely, you pay the local cash grain price on the Friday that precedes, by at least 2 business days, the last business day of February, of April, of June, etc. You sell your output (ethanol mostly) to local fuel marketers on the cash (spot) market. You are worried that corn prices will go up, and decide to hedge your first 6 months of production costs in 2021 using the following strategy:
buy March 2021, May 2021, and July 2021 call options on same-month corn futures, all with the same exercise price of $4.75 per bushel in each case. You use 800 contracts in each case (equivalent to 4m bushels for each maturity).
(ii) simultaneously sell March 2021, May 2021, and July 2021 puts with an exercise price of $4.00 per bushel. All options are European.
(iii) each of those options expires on the Friday which precedes, by at least 2 business days, the last business day of the month prior to the futures contract month (for example, the option on March futures expires in late February).
RUBRIC
Excellent Quality 95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support 91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology 58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score 50-85%
40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality 0-45%
37-1 points The background and/or significance are missing. No search history information is provided.
75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
You Can Also Place the Order at www.collegepaper.us/orders/ordernow or www.crucialessay.com/orders/ordernow Accounting of Current Price of March 2021 Corn Assignment
Accounting of Current Price of March 2021 Corn Assignment