y date you must: a. buy one May corn futures contract. b. buy two April corn futures contract. c. sell one April corn futures contract. d. sell one May corn futures contract. e. none of these.
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8. You hold one long corn futures conttract that expires in April. To close your position in corn futures before the delivery date you must:
a. buy one May corn futures contract.
b. buy two April corn futures contract.
c. sell one April corn futures contract.
d. sell one May corn futures contract.
e. none of these.
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- You have taken a short position in a futures contract on corn at $2.60 per bushel. Over the next 5 days the contract settled at 2.52, 2.57, 2.62, 2.68, and 2.70. You then decide to reverse your position in the futures market on the fifth day at close. What is the net amount you receive at the end of 5 days? A. $0.00 B. $2.60 C. $2.70 D. $2.80 E. Must know the number of contractsSuppose that the 3-month futures price of corn is £2.00 (£2 per bushel). The cost-of-carry for this contract is 10%. Under the theory of cost of carry, what is the value of a 6-month futures corn contract?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
- On November 29, 2019 you bought one July 2020 maturity corn futures contract at a futures price of $3.90 per bushel. If the price of the corn in the market in July 2020 (on the maturity date) is $3.78, what is your profit/loss? The contract multiplier is 5000 bushel.Consider the following prices, volume and open interest for gold futures contracts. Contract size: 100 oz Price units: $/oz (a) What was the value of the contract that expires in February 2022 when the market closed? (b) Which futures contracts had a higher settle price on the previous trading day? (c) Would a speculator prefer to go short at the daily high price or the daily low price?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
- Assume 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.On a particular day, the S&P 500 futures settlement price was 899.30. You buy one contract at the settlement price at around the close of the market. The next day the contract opens at 899.70, and the settlement price at the close of the day is 899.10. Determine the value of the futures contract at the opening, an instant before the close, and after the close. Remember that the S&P futures contract has a $250 multiplier.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 speculator enters a futures contract for September delivery (September 19) of £62,500 on February 2. The futures exchange rate is $1.650 per pound. He believes that the spot rate for pounds on September 19 will be $1.700 per pound. The margin requirement is 2 percent. (a) If his expectations are correct, what would be his rate of return on the investment? (b) If the spot rate for pounds on September 19 is 5 percent lower than the futures exchange rate, how much would he lose on the futures speculation? (c) If there is a 65 percent chance that the spot rate for pounds will increase to $1.700 by September 19, would you speculate in the futures market?Assume that on Friday August 1, you buy one Chicago Board of Trade September Treasury bond futures contract at the opening price of $97,800. The initial margin requirement is $2,500 and the maintenance margin requirement is $2,000. The settlement price of the contract at closing on that day is $97,400. The settlement price of the contract at closing on the next business day (August 4) is $98,000. Your margin account balance at the end of the day on August 4 is $ . Question 23 options:Assume today’s settlement price on a CME EUR futures contract is $1.3140/EUR. You have a long position in one contract. Your performance bond account currently has a balance of $1,700. The next three days’ settlement prices are $1.3126, $1.3133, and $1.3049. 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.)