On the basis of the information provided indicate how much
On the basis of the information provided, indicate how much profit or loss you would make in each of the futures transactions listed below.
a. You buy 3 yen contracts at a quote of 1.0180 and sell them a few months later at
1.0365 (12,500,000 yen per contract; prices quoted in $ per 100 yen).
b. The price of oats (5,000 bushels/contract; cents/bu) goes up $0.60 a bushel, and you hold 3 contracts.
c. You short sell 2 feeder cattle contracts (50,000 lb/contract; cents/lb) at $1.24 a pound and the price drops to $1.03 per pound.
d. You recently purchased a Swiss franc contract (CHF 125,000/contract; $/CHF) at
0.7272, and 6 weeks later the contract is trading at 0.685.
e. You short sell S&P 500 contracts ($250 * index) when the index is at 1,396.55 and cover when the index moves to 1,371.95.
f. You short 3 corn contracts (5,000 bushels/contract; cents/bu) at $2.34 a bushel and the price of corn goes to $2.495 a bushel.
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