The T-Shirt Factory Purchased Seven Futures Contracts on Cotton at a Quoted

question 30

Multiple Choice

The T-Shirt Factory purchased seven futures contracts on cotton at a quoted price of 63.70 as a hedge against its inventory needs. At the time it actually needed the cotton, the spot price was 64.50. Cotton futures are based on 50,000 pounds and quoted in cents per pound. How much did the Shirt Factory save by hedging cotton?

• A)$40
• B)$400
• C)$2,600
• D)$2,400
• E)$2,800

Grasp the impact of negative and positive symptoms on individuals with schizophrenia and their prognosis.

Recognize the sociocultural factors associated with the incidence of schizophrenia.

Comprehend the neurobiological underpinnings and hypotheses concerning schizophrenia's etiology.

Understand the developmental and neurodevelopmental perspectives on schizophrenia.

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Definitions:

Payback Period

The length of time it takes for an investment to generate enough cash flow to recover its original cost, a measure of investment risk.

Investment Project

A project that allocates capital with the aim of generating returns over time, often involving infrastructure, real estate, or other assets.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual increments.

Net Present Value

The disparity between the current value of cash inflows and outflows over a specific timeframe.