4. On April, a trader sold 10 July sugar futures and purchased 10 September sugar futures, with prices of $5350 per ton and $5400 per ton respectively. On May, the trader hedged and closed all the positions of the contracts, with the closing prices of July and September contracts at $5,390 per ton and $5,480 per ton respectively. The trading unit of sugar futures is 10 tons per contract, excluding commissions and other expenses. The arbitrage trade have (). A. Loss of $2000 B. Profit of $2000 C. Loss of $4000 D. Profit of $4000
4. On April, a trader sold 10 July sugar futures and purchased 10 September sugar futures, with prices of $5350 per ton and $5400 per ton respectively. On May, the trader hedged and closed all the positions of the contracts, with the closing prices of July and September contracts at $5,390 per ton and $5,480 per ton respectively. The trading unit of sugar futures is 10 tons per contract, excluding commissions and other expenses. The arbitrage trade have (). A. Loss of $2000 B. Profit of $2000 C. Loss of $4000 D. Profit of $4000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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