Question
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Soybean futures contracts are quoted in cents per bushel. Thereare 5,000 bushels per contract. The...
Soybean futures contracts are quoted in cents per bushel. There are 5,000 bushels per contract. The price lit or circuit breaker for soybeans is 60 cents. The quote for Sep. 2021 is 989'6. The prior settle was 986'4. What is the upper and lower limits for trading this contract today?
Solutions
Expert Solution
| LOWER CIRCUIT | 926'4 PER CONTRACT |
| UPPER CIRCUIT | 1046'4 PER CONTRACT |
CURCUITS ARE CALCULATED ON THE BASIS OF PREVIOUS SETTLEMENT
THEREFORE
LOWER CIRCUIT = PRIOR SETTLE PRICE - CIRCUIT BREAKER
= 986'4 - 60
= 926'4 PER 500 BUSHELS
UPPER CIRCUIT = PRIOR SETTLE PRICE + CIRCUIT BREAKER
= 986'4 + 60
= 1046'40 PER 500 BUSHELS
jeff jeffy answered 2 years agoRelated Solutions
Soybean futures contracts are quoted in cents per bushel. Thereare 5,000 bushels per contract. The...
Soybean futures contracts are quoted in cents per bushel. There
are 5,000 bushels per contract. The price lit or circuit breaker
for soybeans is 60 cents. The quote for Sep. 2021 is 989'6. The
prior settle was 986'4. What is the upper and lower limits for
trading this contract today?
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be? (Assume you don’t pay any commissions or fees for the entry and
exit transactions.)
10 dollars loss
1,000 dollars loss
10 dollars profit
1,000 dollars profit
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On CME group website, the September 2020 Corn future was quoted
433.75 (cents per bushel, 5000 bushels per
contract) today and Springfield Mill (SM) took one
long position to hedge against the price change of
corn and will hold this future contract till maturity date. The
initial margin requirement is 10% of notional value.
1) How much would SM deposit to the
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2) Suppose in June, the same corn
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3. Options contracts for corn are listed below. A single option contract is for 5,000 bushels,...
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contract is for 5,000 bushels, but prices are quoted per bushel.
For example, if someone wanted to purchase a December 2018 put
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Expiration
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Call
Put
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at $9.95 per bushel, to cover a commitment to deliver 100,000
bushels of soybeans to a customer in 60 days at a price of $10.25
per bushel. No margin deposit is required. Spot and futures prices
for soybeans are equal and fluctuate between $9.50 and $10.40 per
bushel. On the day of delivery to the customer, Great Lakes closes
its futures position and buys soybeans in...
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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
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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
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this contract is 462.5, and you close out your...
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