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Derivatives and Risk Management, 1st Edition
book

Derivatives and Risk Management, 1st Edition

by Sundaram Janakiramanan
May 2024
Intermediate to advanced content levelIntermediate to advanced
542 pages
27h 26m
English
Pearson India
Content preview from Derivatives and Risk Management, 1st Edition
Hedging Strategies Using Futures 105
E X A M P L E 6 . 2
On September 10, a wholesale merchant estimates that his company will require 30 MT of chana
on February 20. e current spot price of chana is INR 1,912 per quintal (100 kg), and the price of a
February chana futures contract is INR 2,011 per quintal. Each contract is for 1 MT (1,000 kg or 10 quin-
tals) of chana. Note that the futures price is always specied in terms of the unit traded. In this example,
the futures price is always stated in terms of “per quintal”. Since the contract size is 10 quintals, contract
value will be the (futures price × 10).e wholesale merchant can ...
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Publisher Resources

ISBN: 9781299447547Publisher Website