Suppose you buy 15 of the September corn futures contracts at the last price of the day.

Question:

Suppose you buy 15 of the September corn futures contracts at the last price of the day. One month from now, the futures price of this contract is 469'2, and you close out your position. Calculate your dollar profit on this investment.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Investments Valuation and Management

ISBN: 978-0077283292

5th edition

Authors: Bradford D. Jordan, Thomas W. Miller

See More Books

Question Posted: Sep 19, 2012 04:32 AM

See More Questions

You are short 15 March 2016 corn futures contracts. Calculate your dollar profit or loss from this trading day using Figure 14.1. Figure 14.1 Metal & Petroleum Futures Contract Open Chg Interest...
You shorted 15 March 2016 British pound futures contracts at the high price for the day. Looking back at Figure 14.1, if you closed your position at the settle price on this day, what was your...
Last month, you bought one March GBP futures contract at the closing rate of $1.2400. Assume that the maturity date of this contract is today, March x, 2020. If the spot rate today (at expiration) is...
A firm has initial fund of $800. The market rate of return is 12%. The firm has identified good investment opportunities to invest $640 at an average 25 per cent rate of return. How much dividend...
Figure 23 shows a contour map for barometric pressure in millibars. Level curves for barometric pressure are called isobars. (a) What part of the country had the lowest barometric pres-sure? The...
Speedy Delivery Company provides next-day delivery across the southeastern United States. During May, Speedy incurred $132,600 in fuel costs. Speedy paid $95,450 of the fuel cost in May, with the...
What are the criteria used for estimating the total effort required by a salesperson to cover a territory?
The Lubbock plant of Morrils Small Motor Division produces a major subassembly for a 6.0 horsepower motor for lawn mowers. The plant uses a standard costing system for production costing and control....
why do you think the Virginia Company continued to send colonists to Jamestown after the rise in mortality rate, the continued conflict with local tribes, and disease?
1. No sculptures by Rodin are boring creations. Therefore, all sculptures by Rodin are boring creations. 2. It is false that some lunar craters are volcanic formations. Therefore, no lunar craters...
Suppose you sell 25 of the May corn futures at the high price of the day. You close your position later when the price is 460'4. Ignoring commission, what is your dollar profit on this transaction?
If you wanted to purchase the right to sell 2,000 shares of JC Penney stock in August 2008 at a strike price of $45 per share, how much would this cost you?
If the supply and demand functions for a commodity are given by 4p - q = 42 and (p + 2)q = 2100, respectively, find the price that will result in market equilibrium?
Name ways you can gain income. How do most people make most of their money? How do you plan to match your expenses to your income? Will you cut expenses, or do you have a plan to increase your...
Examine the last five years of annual financial statements from a public company that you think you already know fairly well from your own personal experiences (for example, Starbucks or Apple). ...
Consider the pros and cons of investing in a certificate of deposit versus a mutual fund. Which investment would you choose as the best option if you wanted to get the highest rate of return? Why?
With reference to the factors affecting their growth, discuss the topic of Loan Sales and how the current inflationary pressures affect them.
Go to a stock price quote site (or WSJ), choose a publicly-traded stock and get its price, dividend yield, 52 weeks high and low price, its P/E ratio, and its beta. Is this stock a growth stock or...
Thanks to sustained public health campaigns, most people understand that smoking carries significant risks. As a result, rates of smoking have declined over the past few decades. However, rates of...
In your audit of Garza Company, you find that a physical inventory on December 31, 2012, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items...
For a brand such as Bank of America, Pantene, or Ford, how would you go about creating blockbuster global brand-building programsfor example, sponsorships, promotions, or advertising? How would you...
One year has passed and Sands's common equity price has increased to $58 per share. Name the two components of the convertible bond's value. Indicate whether the value of each component should...
You own a bond with a 6 percent coupon rate and a yield to call of 6.90 percent. The bond currently sells for $1,070. If the bond is callable in five years, what is the call premium of the bond?
A STRIPS with 9 years until maturity and a face value of $10,000 is trading for $7,693. What is the yield to maturity?
What if Scenrio May stays as planned but that your supplier tells you that you will not receive any shipments for the rest of the year for the following games: boggle, telestrations, ticket to ride,...
enjamin and Nellie Barker have taxable income of $120,000. Several of the items used to calculate their taxable income included W-2 wages of $150,000, and Net Long-Term Capital Losses of $6,000....
Betty Lou sold a rental condominium that she had owned for several years. Her records reveal the following: Item to be Allocated Total Personal Property Building Land Rights Original purchase price...

Suppose you buy 15 of the September corn futures contracts at the last price of the day.

Question:

Step by Step Answer:

Initial value of position 1...View the full answer

Fundamentals of Investments Valuation and Management

Students also viewed these Corporate Finance questions