Question

Hillary considers herself a shrewd commodities investor. She bought a May cotton contract (50,000 pounds) at $ 0.7527$0.7527 a pound, and later sold it at $ 0.8113$0.8113 a pound. What were her profit and her return on invested capital if her initial margin was $ 1 comma 380$1,380 and the size of a cotton futures contract is 50,000 pounds of cotton?

Name: hillary considers herself a shrewd commodities investor she bought a may cotton contract 50000 pounds at 0752707527 a pound and later sold it at 0811308113 a pound what were her profit and h 73979
Uploaded: 2023-11-24T06:12:01-08:00
Duration: 3 min 38 s
Channel: Akash M
Description: hillary considers herself a shrewd commodities investor she bought a may cotton contract 50000 pounds at 0752707527 a pound and later sold it at 0811308113 a pound what were her profit and h 73979

          Hillary considers herself a shrewd commodities investor. She bought a May cotton contract (50,000 pounds) at
$ 0.7527$0.7527
a pound, and later sold it at
$ 0.8113$0.8113
a pound. What were her profit and her return on invested capital if her initial margin was
$ 1 comma 380$1,380
and the size of a cotton futures contract is 50,000 pounds of cotton?

Added by Domingo G.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

11/24/2023

Step 1

- The price per pound when she bought the contract was $0.7527. - The size of the contract is 50,000 pounds. - Total cost = Price per pound × Size of contract = $0.7527 × 50,000 = $37,635. Show more…

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Hillary considers herself a shrewd commodities investor. She bought a May cotton contract (50,000 pounds) at $ 0.7527$0.7527 a pound, and later sold it at $ 0.8113$0.8113 a pound. What were her profit and her return on invested capital if her initial margin was $ 1 comma 380$1,380 and the size of a cotton futures contract is 50,000 pounds of cotton?