You are a jewelry maker. Every July you need to purchase 20,000 troy ounces of silver to cover your production needs. Today, you hedged your position at what turned out to be the lowest price
For the day. Assume the actual price per troy ounce of silver is 14.108 at time you need the silver in
July. How much more would you have spent or saved if you had not hedged your position?
Silver - 5,000 troy oz.: dollars and cents per troy oz.

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The Answer of You are a jewelry maker. Every July you need to purchase 20,000 troy ounces of silver to cover your production needs. Today, you hedged your position at what turned out to be the lowest price
For the day. Assume the actual price per troy ounce of silver is 14.108 at time you need the silver in
July. How much more would you have spent or saved if you had not hedged your position?
Silver - 5,000 troy oz.: dollars and cents per troy oz.

You Are a Jewelry Maker