$ A. Its now Apr-8 (refer to data table). You need to buy 500,000 Pounds on...

 

 

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$ A. Its now Apr-8 (refer to data table). You need to buy 500,000 Pounds on May-29. Enter on #A answer space the value of 500,000 Pounds now at Apr-8 Spot price. $ B. (refer to data table). If you did not hedge, buying 500,000 Pounds on May 29 would have what value $ at May 29 Spot price. $ diff. 1. 5pts IF not hedging, the difference ('-$' = loss, paid more, +$' =gain, paid %! less) from buying the 500,000 Pounds on May 29 compared to Spot value on Apr.8 is (fill in answ. box) $ C. WITH HEDGING On Apr.8 assume you bought June Pound futures at $1.2400 / P. Enter on #C answer the value of the 500,000 Pounds at the Futures price on Apr.8 $ D. It's now May 29 (assume you bought June futures on Apr.8 at the $1.2400/ P price) You close your 500,000 Pounds futures position on May 29 at the futures price of $1.2326 / P. Enter on #D answer space the Futures value of the 500,000 Pounds at May 29 Futures price. difference 2. 5pts Enter the $ amount of the Futures position GAIN (+$) or LOSS (-$) 3. 3pts NET $ effect on May 29 with Futures hedge started on Apr.8 Enter combined NET amount from answers to #1 and #2 %24 JUNE POUND Futures Spot Price divided Futures $/Pound Futures Prices DATE by date by Spot Price June 2020 contract Apr. 8 Apr. 9 Apr. 10 Apr. 15 $1.2400 $ 1.2384 $1.2455 $ 1.2459 $1.2462 $ 1.2447 $1.2556 $ 1.2521 1.0013 0.9997 $1.2750 1.0012 1.0028 Apr. 16 $1.2462 1.2458 1.0003 Apr. 17 Apr. 20 Аpг. 21 Apr. 22 Apr. 24 Apr. 27 Apr. 28 Apr. 29 Apr. 30 May.1 May.4 May.5 May.6 May.7 May.11 May.12 May.13 May.14 May.15 May.18 May.19 May.20 May.21 May.22 May.26 May.27 May.28 Мay.29 $1.2493 $ 1.2500 $1.2448 $ 1.2434 $1.2284 $ 1.2294 $1.2322 $ 1.2335 $1.2355 $ 1.2365 $1.2425 $ 1.2429 $1.2436 $ 1.2426 $1.2454 $ 1.2468 $1.2602 $ 1.2594 $1.2488 $ 1.2493 $1.2442 $ 1.2443 $1.2455 $ 1.2435 $1.2347 $ 1.2341 $1.2359 $ 1.2362 $1.2332 $ 1.2334 $1.2282 $ 1.2260 $1.2221 $ 1.2235 $1.2196 $ 1.2231 $1.2118 $ 1.2106 $1.2193 $ 1.2195 $1.2287 $ 1.2251 $1.2231 $ 1.2237 $1.2236 $ 1.2220 $1.2170 $ 1.2159 $1.2343 $ $1.2256 $ 1.2258 $1.2344 $ 0.9994 $1.2650 1.0011 0.9992 0.9989 0.9992 0.9997 1.0008 $1.2550 0.9989 1.0006 $1.2450 0.9996 0.9999 1.0016 1.0005 0.9998 $1.2350 0.9998 1.0018 0.9989 0.9971 $1.2250 1.0010 0.9998 1.0029 0.9995 $1.2150 1.0013 1.0009 MayS 1.2335 1.0006 Seriest Series2 0.9998 1.0018 1.2322 $1.2326 $ 1.2349 0.9981 Apr, 8 Apr. 10 Apr. 16 Apr. 20 Apr, 22 Apr. 27 Apr. 29 May.1 May.7 May.12 May.14 May 18 May.20 May 22 May 27 May 29 $ A. Its now Apr-8 (refer to data table). You need to buy 500,000 Pounds on May-29. Enter on #A answer space the value of 500,000 Pounds now at Apr-8 Spot price. $ B. (refer to data table). If you did not hedge, buying 500,000 Pounds on May 29 would have what value $ at May 29 Spot price. $ diff. 1. 5pts IF not hedging, the difference ('-$' = loss, paid more, +$' =gain, paid %! less) from buying the 500,000 Pounds on May 29 compared to Spot value on Apr.8 is (fill in answ. box) $ C. WITH HEDGING On Apr.8 assume you bought June Pound futures at $1.2400 / P. Enter on #C answer the value of the 500,000 Pounds at the Futures price on Apr.8 $ D. It's now May 29 (assume you bought June futures on Apr.8 at the $1.2400/ P price) You close your 500,000 Pounds futures position on May 29 at the futures price of $1.2326 / P. Enter on #D answer space the Futures value of the 500,000 Pounds at May 29 Futures price. difference 2. 5pts Enter the $ amount of the Futures position GAIN (+$) or LOSS (-$) 3. 3pts NET $ effect on May 29 with Futures hedge started on Apr.8 Enter combined NET amount from answers to #1 and #2 %24 JUNE POUND Futures Spot Price divided Futures $/Pound Futures Prices DATE by date by Spot Price June 2020 contract Apr. 8 Apr. 9 Apr. 10 Apr. 15 $1.2400 $ 1.2384 $1.2455 $ 1.2459 $1.2462 $ 1.2447 $1.2556 $ 1.2521 1.0013 0.9997 $1.2750 1.0012 1.0028 Apr. 16 $1.2462 1.2458 1.0003 Apr. 17 Apr. 20 Аpг. 21 Apr. 22 Apr. 24 Apr. 27 Apr. 28 Apr. 29 Apr. 30 May.1 May.4 May.5 May.6 May.7 May.11 May.12 May.13 May.14 May.15 May.18 May.19 May.20 May.21 May.22 May.26 May.27 May.28 Мay.29 $1.2493 $ 1.2500 $1.2448 $ 1.2434 $1.2284 $ 1.2294 $1.2322 $ 1.2335 $1.2355 $ 1.2365 $1.2425 $ 1.2429 $1.2436 $ 1.2426 $1.2454 $ 1.2468 $1.2602 $ 1.2594 $1.2488 $ 1.2493 $1.2442 $ 1.2443 $1.2455 $ 1.2435 $1.2347 $ 1.2341 $1.2359 $ 1.2362 $1.2332 $ 1.2334 $1.2282 $ 1.2260 $1.2221 $ 1.2235 $1.2196 $ 1.2231 $1.2118 $ 1.2106 $1.2193 $ 1.2195 $1.2287 $ 1.2251 $1.2231 $ 1.2237 $1.2236 $ 1.2220 $1.2170 $ 1.2159 $1.2343 $ $1.2256 $ 1.2258 $1.2344 $ 0.9994 $1.2650 1.0011 0.9992 0.9989 0.9992 0.9997 1.0008 $1.2550 0.9989 1.0006 $1.2450 0.9996 0.9999 1.0016 1.0005 0.9998 $1.2350 0.9998 1.0018 0.9989 0.9971 $1.2250 1.0010 0.9998 1.0029 0.9995 $1.2150 1.0013 1.0009 MayS 1.2335 1.0006 Seriest Series2 0.9998 1.0018 1.2322 $1.2326 $ 1.2349 0.9981 Apr, 8 Apr. 10 Apr. 16 Apr. 20 Apr, 22 Apr. 27 Apr. 29 May.1 May.7 May.12 May.14 May 18 May.20 May 22 May 27 May 29

Answer rating: 100% (QA)

A value of 500000 pounds at April 8 spot price 50000012384619200 Bvalue of 50000... View the full answer