EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Question
Chapter 2, Problem 17PS
Summary Introduction
Introduction: Future contract is a contract between buyer and seller where they are ready to buy and sell a primary stock at a fixed price in the future date. In a future contract, a trader can hold a long position as well as short position.
To calculate: Profit on the contract.
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Table 2.7
Corn futures prices
on the Chicago
Mercantile Exchange,
January 3, 2019
Maturity Last
Mar-19
May-19
Jul-19
Sep-19
Dec-19
Mar-20
Change High
3.8025
0.7500 3.8075 3.7975
3.8800
0.5000 3.8800
3.8750
3.9500
0.2500 3.9525
3.9450
3.9700
0.0000 3.9700
3.9650
4.0075 -0.5000 4.0100
4.0025
4.0975 0.0000 4.1000 4.0950
Low
Source: www.cmegroup.com.
Look at the futures listings for the corn contract in Table 2.7.Suppose you buy one contract for September 2019 delivery. If the contract closes in September at a level of 4.36, what will your profit be? (Round your answer to 2 decimal places.)
On November 29, 2019 you bought one July 2020 maturity corn futures contract at a futures price of $3.90 per bushel. If the price of the corn in the market in July 2020 (on the maturity date) is $3.78, what is your profit/loss? The contract multiplier is 5000 bushel.
Chapter 2 Solutions
EBK INVESTMENTS
Ch. 2 - Prob. 1PSCh. 2 - Prob. 2PSCh. 2 - Prob. 3PSCh. 2 - Prob. 4PSCh. 2 - Prob. 5PSCh. 2 - Prob. 6PSCh. 2 - Prob. 7PSCh. 2 - Prob. 8PSCh. 2 - Prob. 9PSCh. 2 - Prob. 10PS
Ch. 2 - Prob. 11PSCh. 2 - Prob. 12PSCh. 2 - Prob. 13PSCh. 2 - Prob. 14PSCh. 2 - Prob. 15PSCh. 2 - Prob. 16PSCh. 2 - Prob. 17PSCh. 2 - Prob. 18PSCh. 2 - Prob. 19PSCh. 2 - Prob. 20PSCh. 2 - Prob. 21PSCh. 2 - Prob. 22PSCh. 2 - Prob. 1CPCh. 2 - Prob. 2CPCh. 2 - Prob. 3CPCh. 2 - Prob. 4CPCh. 2 - Prob. 5CP
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