Use the following corn futures quotes (priced in cents):Corn 5,000 bushelsHighLowSettleOpenChg Open Int455.125 457.000 451.750 452.000 -2.750 597,913467.000 468.000 463.000 463.250 -2.750 137,547477.000 477.500 472.500 473.000 -2.000 153,164475.000 475.500 471.750 472.250 -2.00029,258ContractMonthMarMayJulySepSuppose you sell 19 of the May corn futures at the high price of the day. You close your position later when the price is464.500. Ignoring commission, what is your dollar profit on this transaction? (Do not round intermediate calculations.Round your answer to 2 decimal places.)Dollar profit

Futures are derivative contracts between two parties in which securities, assets, and commodities…

Use the following corn futures quotes (priced in cents): Corn 5,000 bushels Low High Settle Chg Open Int 455.125 457.000 451.750 452.000 -2.750 597,913 467.000 468.000 463.000 463.250 -2.750 137,547 477.000 477.500 472.500 473.000 -2.000 153,164 475.000 475.500 471.750 472.250 -2.000 29,258 Contract Month Open Mar May July Sep Suppose you sell 19 of the May corn futures at the high price of the day. You close your position later when the price is 64.500. Ignoring commission, what is your dollar profit on this transaction? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Dollar profit

Use the following corn futures quotes (priced in cents): Corn 5,000 bushels Low High Settle Chg Open Int 455.125 457.000 451.750 452.000 -2.750 597,913 467.000 468.000 463.000 463.250 -2.750 137,547 477.000 477.500 472.500 473.000 -2.000 153,164 475.000 475.500 471.750 472.250 -2.000 29,258 Contract Month Open Mar May July Sep Suppose you sell 19 of the May corn futures at the high price of the day. You close your position later when the price is 64.500. Ignoring commission, what is your dollar profit on this transaction? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Dollar profit

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Given the following information for December 24 corn futures, identify the "In the Money", "At The Money", and "Out of the Money" 22 puts and Calls. The December 24 futures price is $4.71. Also, calculate the intrinsic and extrinsic values of the premiums. 24 25 26 27 28 29 30 31 32 33 34 35 36 37 \table[[Strike,Premium],[Prices,Puts,Monies],[5.2,0.655,Out],[5.1,0.583,In],[5,0.513,At],[4.9,0.447,Out],[4.8,0.386,],[4.7,0.33,],[4.6,0.276,],[4.5,0.227,],[4.4,0.185,],[4.3,0.147,]] \table[[Puts,,],[Intrinsic,Extrinsic,Calls],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]
Please answer both questions What is the risk premium for the stock in the table below? The risk free rate is 1.05% and the market risk premium is 5.41%. What is the expected return based on CAPM for the stock in the table below? The risk free rate is 1.05% and the market risk premium is 5.41%. The Home Depot, Inc. (HD) NYSE - NYSE Delayed Price. Currency in USD 264.55 -0.26 (-0.10%) At close: December 11 4:00PM EST summary Company Outlook Chart Conversations Stal Previous Close 264.81 Market Cap 284.815B Open 263.36 Beta (5Y Monthly) 1.05 Bid 264.15 x 1000 PE Ratio (TTM) 22.88 Ask 264.55 x 800 EPS (TTM) 11.56 Day's Range 262.65 - 265.36 Eamings Date Feb 23, 2021 52 Week Range 140.63 - 292.95 Forward Dividend & Yield 6.00 (2.27%) Volume 3,454,512 Ex-Dividend Date Dec 02, 2020 Arg. Volume 3,631,762 ly Target Est 305.06
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
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 84,711
Use the futures contract data in the following table to answer the question. Open High Low Settle Change Interest New Zealand dollar CME NZD 100,000; NZD/USD Sept 0.6043 0.6175 0.6025 0.6048 -0.0007 34,157 Dec 0.6128 0.6195 0.6105 0.6126 0.0004 1,569 A trader goes LONG three December NZD futures and the spot rate at maturity is 0.6138. What is the value of her position?
The IMM index price in yesterday's newspaper for a September Eurodollar futures contract is 95.23. The IMM index price in today's newspaper for the contract mentioned above is 95.25. How much is the change in the actual futures price of the contract since the previous day? $25 $50 $75 $100 .
On January 1, you sold one April S&P 500 index futures contract at a futures price of 1775. If the April futures price is 1918 on February 1, what is your profit or loss if you close your position? The multiplier for the S&P 500 index futures contract is 250. Group of answer choices +35,750 +53,096 +32,933 -32,933 -35,750
You placed $120,000 in your future trading account have just bought your first HSI June 2023 futures contract today @ 19,652, at market close the HSI June 2023 future closed at 19,534. Currently the initial margin for HSI is $101,944, the maintenance margin is $81,555. HSI futures is $50 per index point. What is you margin account balance as of market closed today? Please write out the detailed calculation steps
On the 1st of March, a commodity’s spot price is $60 and its futures contract price with maturity in August is $59. On the 1st of July, the commodity spot price is $64 and its futures contract price with maturity in August is $63.50. A company entered into the futures contracts on 1st of March to hedge its purchase of the commodity on July 1. It closed out its position on July 1. What is the effective price (after taking account of hedging) paid by the company? $60.50 $61.50 $63.50 $59.50
Assume that the Euro (EUR) futures price for September is USD 1.90. Given that 115,000 units are in a Euro futures contract, the seller of Euro futures will receive which of the following? a. EUR 115000 b. EUR 60526 c. USD 60526 d. USD 218500 e. EUR 218500
The market risk premium is 5.41% and the yield on a Treasury bond is 1.02%. What is the fair return on this stock? this is part of the questionAmazon.com, Inc. (AMZN) NasdaqGS - NasdaqGS Real Time Price. Currency in USD 3,099.40 - 17.62 (-0.57%) At close: November 20 4:00PM EST Summary Company Outlook Chart Conversations Sta Previous Close 3,117.02 Market Cap 1.555T Open 3,117.02 Beta (5Y Monthly) 1.30 Bid 3,102.80 x 800 PE Ratio (TTM) 90.62 Ask 3,104.75 x 900 EPS (TTM) 34.20 Day's Range 3,098.05 - 3,132.89 Earnings Date Jan 28, 2021 - Feb 01, 2021 52 Week Range 1,626.03 - 3,552.25 Forward Dividend & Yield N/A (N/A) Volume 3,380,138 Ex-Dividend Date N/A Avg. Volume 5,170,951 1y Target Est 3,812.78
The futures price of a commodity such as wheat is $2.50 a bushel. Futures contracts are for 10,000 bushels, and the margin requirement is $2,500 a contract. The maintenance market requirement is $1,000. A speculator expects the price of the commodity to rise and enters into a contract to buy wheat. a. How much must the speculator initially remit? b. If the futures price rises to $2.60, what is the profit and return on the position? c. If the futures price declines to $2.47, what is the loss on the position?

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