What is the intrinsic and time value for the put option premium with a strike price of $70/barrel and expiry date December 2021? 2. What is the intrinsic and time value for the put option premium with a strike price of $69/barrel and expiry date March 2022?
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1. What is the intrinsic and time value for the put option premium with a strike price of $70/barrel and expiry date December 2021?
2. What is the intrinsic and time value for the put option premium with a strike price of $69/barrel and expiry date March 2022?
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- 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. $1,014On 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. $1,018On 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
- An investor enters a long position in a Bitcoin April 2023 futures contract at $23,450. Each contract controls 5 bitcoins. The initial margin for each contract is $30,800, the maintenance margin is $28,000. The futures price changes to $23,020 at the end of the first day and $22,752 on the end of the second day. Compute the amount in the margin account at the end of each day for the long position and any variation margin needed. (Please provide a step-by-step solution on how to solve this problem with a calculator, thank you!)Use the following corn futures quotes: Corn 5,000 bushels Contract Month Open High Low Settle Chg Open Int Mar 455.125 457.000 451.750 452.000 −2.750 597,913 May 467.000 468.000 463.000 463.250 −2.750 137,547 July 477.000 477.500 472.500 473.000 −2.000 153,164 Sep 475.000 475.500 471.750 472.250 −2.000 29,258 How many of the September contracts are currently open? How many of these contracts should you sell if you wish to deliver 75,000 bushels of corn in September? If you make delivery, how much will you receive? Assume you locked in the settlement price.Q: inance Department 7. On November 1, 2020 a trader took a long position in three futures contracts on a commodity that expires on March 31", 2021. The initial futures price is $60. On December 31, 2020 the futures price is $61. On Feb 28, 2021 it is $64. The contract is closed out on February 28, 2021 What gain is recognized in the accounting year from January 1 to December 31, 2020? Each contract is on 1000 units of the commodity and the transaction qualities to be considered as a hedge. A. $0 B. $3,000 C. $9,000 D. $12,000
- Assume 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:Current futures prices ($/barrel): Oct 70.01; Dec 69.78; Mar 69.40. Contract size: 1000 barrels WTI crude oil put premium quotes ($/barrel) Strike price ($/barrel) Oct ‘21 Dec ‘21 Mar ‘21 69.00 1.00 4.20 7.10 69.50 1.10 4.30 7.30 70.00 1.20 4.62 7.90 70.50 1.49 4.92 8.2 1. Suppose the speculator still holds the put option at the expiry date. If the futures price at expiry is $73/barrel, should he: (i) Do nothing (ii) Exercise the option 2. Suppose the speculator still holds the put option at the expiry date. If the futures price at expiry is $67/barrel, should he: (i) Do nothing (ii) Exercise the option
- 1. Assume an investor takes a long position in 4 September KLSE CI futures contract on 15th July. The futures contract price is RM1623.00. The initial margin and maintenance margin are RM6,500 per contract and RM4,500.00 per contract respectively. The trader closes his position on the sixth day. The contract size is RM50 per contract. The futures settlement prices during those six days are: Day 1 RM1621 Day 2 RM1625 Day 3 RM1630 Day 4 RM1620 Day 5 RM1618 Day 6 RM1640 a. Determine the trader's total gains or losses. b. How much does the trader pay for margin call ? * Show all workingsThe 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 .Assume today’s settlement price on a CME EUR futures contract is $1.3158/EUR. You have a long position in one contract. Your performance bond account currently has a balance of $2,600. The next three days’ settlement prices are $1.3144, $1.3151, and $1.3067. Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day. (Do not round intermediate calculations. Round your answer to 2 decimal places.) What is the change in the performance bond account?