5. On June, an investor bought five (10 tons per contract) of soybean futures at $3,000 per ton. Assume the exchange set an initlal margin of 10% and a maintenance margin of 8%. If its settlement price falls to $2800 per ton, the variation margin should be ()? A. 6000 B. 6200 C. 9000 D. 10000

5. On June, an investor bought five (10 tons per contract) of soybean futures at $3,000 per ton. Assume the exchange set an initlal margin of 10% and a maintenance margin of 8%. If its settlement price falls to $2800 per ton, the variation margin should be ()? A. 6000 B. 6200 C. 9000 D. 10000

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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Question

5. On June, an investor bought five (10 tons per contract) of soybean futures at
$3,000 per ton. Assume the exchange set an initlal margin of 10% and a
maintenance margin of 8%. If its settlement price falls to $2800 per ton, the
variation margin should be ()?
A. 6000
B. 6200
C. 9000
D. 10000

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June 2019 Mexican peso futures contract has a price of $0.05197 per MXN. You believe the spot price in June will be 0.05831 per MXN a. What speculative position would you enter into to attempt to profit from your beliefs? O Short position O Long Position b. Calculate your anticipated profits, assuming you take a position in three contracts. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Anticipated profit c. What is the size of your profit (loss) if the futures price is indeed an unbiased predictor of the future spot price and this price materializes? (A Negative value should be indicated with a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number)
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23. Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for $.05 per unit. A pound option represents 31,250 units. Assume that at the time of the purchase, the spot rate of the pound is $1.51 and continually rises to $1.62 by the expiration date. The highest net profit possible for the speculator based on the information above is: A) $1,562.50. B) -$1,562.50. C) -$1,250.00. D) -$625.00.
June 2021 Mexican peso futures contract has a price of $0.05197 per MXN. You believe the spot price in June will be $0.05831 per MXN. MXN500,000 is the contract size of one MXN contract. Required: What speculative position would you enter into to attempt to profit from your beliefs? Calculate your anticipated profits, assuming you take a position in three contracts. What is the size of your profit (loss) if the futures price is indeed an unbiased predictor of the future spot price and this price materializes?
Three months ago, you sold a put option contract on Swiss franc with a strike price of $.60/SF and an option price of $.0060 per SF. Contract size is 10,000 SF. The option expires today when the value of Swiss franc is $.625. What is your total profit or loss on your investment? A. -$310 B. -$60 C. $0 D. $60
am. 122.
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