The futures price of corn is $3.40 a bushel. Futures contracts for corn are based on 10,000
Question:
a. What is the value of the contract and how much must you initially remit?
b. If the futures price of corn rises to $3.51, what is the profit or loss on your position?
c. If the futures price of gold declines to $3.28, what is the profit or loss on your position?
d. If the futures price declines to $3.18, what may you do?
e. How do you close your position?
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Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
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