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In: Finance
Use the following corn futures quotes: Corn 5,000 bushels Contract Month Open High Low Settle Chg...
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 |
Suppose you buy 27 of the September corn futures contracts at the last price of the day. One month from now, the futures price of this contract is 464.125, and you close out your position. Calculate your dollar profit on this investment. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Solutions
Expert Solution
We have bought One Future Contract of Corn 5,000 bushels at the Rate of 472.250 Which is Last Settle price of September 27 (Assuming Expiry of Sep end on 27th Sep.).
Therefore Purhase Cost i.e. Acquisition cost = 472.250*5,000 = 2,361,250
After one month when price is 464.125 we close out the position.
Therefore Inflow (Contract Value of Sales) = 464.125*5,000 = 2,320,625
Dollar Profit on Investment Will be (Sales-Purchase) = (40625)
jeff jeffy answered 2 years agoRelated Solutions
Use the following corn futures quotes: Corn 5,000 bushels Contract Month Open High Low Settle Chg...
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
Suppose you buy 16 of the September corn futures contracts at
the last price of the day. One month from now, the futures price of
this contract is 462.25, and you close out your...
Use the following corn futures quotes: Corn 5,000 bushels Contract Month Open High Low Settle Chg...
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
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Maturity Open High Low Settle Change High Open Interest March 1.4246 1.4268 1.4214 1.4228 0.0032 1.4700 ...
Maturity Open High Low Settle Change
High Open Interest
March 1.4246 1.4268
1.4214 1.4228 0.0032
1.4700 25,605
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1.4146 1.4162 0.0030
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1.4214 1.4228 0.0032
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