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kaplan MM255 unit 7 assignment




Question;Directions for Submitting Your Instructor Graded;Assignment;You must show your work on all;problems. You may type your answer right into this document. Total;points for project: 45 points. Projects must be submitted as a Microsoft;Word document and uploaded to the Dropbox for Unit 7. All Projects are due by;Tuesday at 11:59 PM ET of the assigned Unit. NOTE: Project problems;should not be posted to the Discussion threads. Questions on the project;problems should be addressed to the instructor by sending an email or by;attending office hours. You will be able to come back to the Dropbox and view your graded;work or in the Gradebook after your instructor evaluates it.;Project;Today?s investigators have various investing;options. One field of investment that can be very profitable in a short time is;the worldwide commodities market. Commodities are tangible items such as grains;(wheat, corn, rice), beef, hogs, pork bellies, metals (gold, silver, copper);or agricultural products (soybeans, cotton, orange juice).;The commodities market is volatile: money can;be made or lost quickly depending on unpredictable factors such as drought;flood, late or early frosts, hurricanes, workers? strikes (mining, dock, or;transportation), fuel price increases, fuel shortages, or political unrest.;Grain companies, ranchers, and meat-packing houses invest in specific products;to use in their businesses to ?lock in? the price ahead of time. For example;in February a rancher may invest in 10,000 bushels of May corn to feed the;cattle all summer. The February price may be low because numerous acres of May;corn may have been planted worldwide. By May, the price may have increased;dramatically due to floods wiping out the U.S. corn crop. The rancher would;have saved money by purchasing the needed corn at the lower price.;Other commodities investors, like you, who;may have no personal knowledge of the commodities, typically invest in futures.;A futures investor buys the rights to purchase products that have not yet been;produced at a specific price, with the hope that the price will increase before;the investment is sold. Because commodity figures are typically held less than;a year before selling, a commodities market investor must be prepared to lose;the entire investment in a short time, usually with no warning.;Suppose that you invest $10,000 in an;agricultural crop commodity today.;1.;What commodity did you select? Why?;2.;Use the internet to check today?s prices as listed in the U.S.;Department of Agriculture?s crop reports at their worldwide;a.What is the;price now?;b.What was the;price a year ago?;c.If you bought the;commodity one year ago at the price back then, then would you have made a;profit or loss based on the price today?;d.For your profit;or loss, write a sentence offering a possible explanation for the profit or;loss?;3.;Research the benefits and risks associated with annuities. Based;on your research, select one particular type of annuity in which you might;consider investing. Describe why you have selected this annuity and how it fits;into your personal financial picture. Note: You do not need to disclose personal;financial details, just be specific about how this annuity fits your plans.;Requirements;?;Write your essay in this document. Do not save it in a separate;file.;?;You must clearly state your position with well-structured;paragraphs using proper grammar, spelling, and sentence structure.;?;This is not an ?opinion? question. You must offer evidence to;support your position, using properly cited sources;?;Your answer must be between 150-250 words (about 1 page of text);?;You must cite at least one source (book, website, periodical);using APA format.;?;Do not use unreliable sources such as Wikipedia? or Yahoo!?;Answers.


Paper#60991 | Written in 18-Jul-2015

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