Calculate the net sales revenue of mel corp

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Mel Corp can supply 50,000 metric tons (MT) of crude palm oil (CPO) to James on 15th March 2021. The current CPO price is RM3400 per MT. It is expected that the CPO could be trading at RM2700 per MT on 15 March 2021. The FCPO (CPO Futures) is currently trading at RM3450 per MT. Each FCPO contract is 25 MTs. If the FCPO is trading at RM2100 per MT on 15 March 2021, calculate the net sales revenue of Mel Corp in this supply transaction if it decides to hedge by using FCPO contracts.

Reference no: EM132673147

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