Question
In: Finance
A corn futures contract is 5,000 bushels. If you buy a contract of corn at 356...
A corn futures contract is 5,000 bushels. If you buy a contract of corn at 356 and sell it for 336, what will your profit or loss be? (Assume you don’t pay any commissions or fees for the entry and exit transactions.)
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10 dollars loss |
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1,000 dollars loss |
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10 dollars profit |
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1,000 dollars profit |
Solutions
Expert Solution
con contract is quated in cents
buy price of corn contract 356cents /bushels
sell price per bushell 336cents/ bushels
loss = 356-336
= 20cents / bushells
future contract is 5000 bushels
thefore total loss = 20 * 5000
= 100000 cents
convert into dollar 100000/100 =$1000
loss of 1000 dollars
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 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...
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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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
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Suppose you buy 18 of the September corn futures contracts at
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(Click to select)LossProfit
$
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