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- A farmer sells futures contracts at a price of $3.65 per bushel. The spot price of corn is $3.15 at contract expiration. The farmer harvested 21000 bushels of corn and sold futures contracts on 20000 bushels of corn. What are the farmer's proceeds from the sale of ALL the corn? Group of answer choices 73,911 81,040 76,150 68,372 84,711A company enters into a short futures contract to sell 10,000 units of a commodity for $0.5 per unit. The initial margin is $5000 and the maintenance margin is $3000. When will there be a margin call? Question 1Answer a. As soon as the futures price exceeds $0.7 per unit. b. As soon as the futures price exceeds $0.8 per unit. c. As soon as the futures price exceeds $0.5 per unit. d. As soon as the futures price exceeds $0.6 per unit.On March 1 the price of a commodity is $1,000 and the December futures price is $1,015. On November 1 the price is $980 and the December futures price is $981. A producer of the commodity entered into a December futures contract on March 1 to hedge the sale of the commodity on November 1. It closed out its position on November 1. What is the effective sale price (after taking account of hedging) received by the company for the commodity? a. $1,016 b. $1,018 c. $1,012 d. $1,014
- On March 1 the price of a commodity is $1,000 and the December futures price is $1,015. On November 1 the price is $970 and the December futures price is $973. A user of the commodity entered into a December futures contract on March 1 to hedge the purchase of the commodity on November 1. It closed out its position on November 1. What is the effective purchase price (after taking account of hedging) paid by the company for the commodity? a. $1,014 b. $1,012 c. $1,016 d. $1,018A company enters into a short futures contract to sell 25,000 units of a commodity for 70 cents per unit. The initial margin is $4,000 and the maintenance margin is $3,000. What is the futures price per unit above which there will be a margin call? O 76 cents O 66 cents 74 cents O 78 centsAssume that on Friday August 1, you buy one Chicago Board of Trade September Treasury bond futures contract at the opening price of $97800. The initial margin requirement is $2500 and the maintenance margin requirement is $2000. The settlement price of the contract at closing on that day is $97400. Your margin account balance at the end of the day is $ . Question 12 options:
- Assume that on Friday August 1, you sell one Chicago Board of Trade September Treasury bond futures contract at the opening price of $97000. The initial margin requirement is $2500 and the maintenance margin requirement is $2000. The settlement price of the contract at closing on that day is $97500. Your margin account balance at the end of the day is $ . Question 15 options:A company enters into 2 long futures contracts on a commodity for 200 cents per unit. Each contract is on 10,000 units of the commodity. The initial margin per contract is $2,500 and the maintenance margin per contract is $2,000. At what futures price will the balance in the margin account equal maintenance margin? a. 205 cents. b. 195 cents. c. 190 cents.You bought a futures contract for $2.60 per bushel and the contract ended at $2.70 after several days of trading with the following close prices each day: $2.52, $2.57, $2.62, $2.68, and $2.70. What would the mark to market sequence be? A. -.08, .05, .05, .06, .02 B. .08, -.05, -.05, -.06, -.02 C. .08, .03, -.02, -.06, -.10 D. -.08, -.03, .02, .06, .10 E. .10, .06, .02, -.03, -.08
- On Monday morning you sell one June T-bond futures contract at $97,843.75. The contract's face value is $100,000. The initial margin requirement is $2,700, and the maintenance margin requirement is $2,000 per contract. Use the following price data to determine the balance on your margin account after Monday's close. Day Settle Monday $ 97,406.25 Tuesday $ 98,000.00 Wednesday $ 100,000.00 $2,700 $2,000 $3,137.50 $2,262.50 97406.25Assume that the price of December 2021 corn futures is $4.65/bushel in February and $4.50 in October. If spot cash price in October is $4.55, what is the farmer's total revenue? Assume he entered into 20 contracts. Each corn contract is 5000 bushels.A farmer sells futures contracts at a price of $3.65 per bushel. The spot price of corn is $3.15 at contract expiration. The farmer harvested 21,000 bushels of corn and sold futures contracts on 20,000 bushels of corn. Ignoring the transaction costs, how much did the farmer improve his cash flow by hedging sales with the futures contracts? Group of answer choices 9,500 10,500 8,900 10,000 9,000
