A farmer sells futures contracts at a price of $6.70 per bushel on 10,000 bushels of corn. The spot price of corn is $6.55 at contract expiration. What is the farmer's profit on the futures contracts?

Q: You are in a short futures contract to sell 5,000 bushels of wheat for 450 cents per bushel. The…

A: Margin call simply refers to the scenario wherein the margin account's funds fall below the required…

Q: Given the following information, what would you expect to be the minimum price at which a 3 month…

A: Storage and Insurance Cost = $0.5 per 100 bushels, per month (Given)For 3 months total Storage and…

Q: 2017 coffee futures is $1.2575 per pound. A single contract covers 37,500 pounds. The margin…

A: Future contracts are daily settled based on opening and closing prices.

Q: Last week, you sold a futures contract on 5,000 troy ounces of silver at a settle price of S 23.10.…

A: To calculate the amount you will receive at the time of delivery, you need to determine the profit…

Q: Suppose that the 3-month futures price of corn is £2.00 (£2 per bushel). The cost-of - carry for…

A: Here given that the 3 month future price of corn is £ 2. Also given the cost of carry for this…

Q: uotations in Exhibit 7.3, note that the September 2016 Mexican peso futures contract has a price of…

A: Future contracts are that to be delivered and settled in the future date and future prices and as…

Q: 9)

A: Thus, deduced (practical fit) closely: Net convenience field: $3.39 per bushel

Q: A trader sells two July futures contracts on frozen orange juice. Each contract is for the delivery…

A: Margins are required to be maintained in account with brokers to keep position open in market.

Q: Example • A farmer sells two soybean futures contracts at a price of $8.91 per bushel. The spot…

A: 1-2Calculation of Proceeds from Sale:1. The proceeds from sale is $125,300.2. The proceeds from sale…

Q: You are the buyer for a cereal company and you must buy 80,000 bushels of corn next month. The…

A: The objective of the question is to determine the number of futures contracts that need to be…

Q: In January 5th of 2018, you took a short position on 100 Feeder Cattle futures contracts that…

A: Hi there, Thanks for posting the question. But. as per Q&A guide lines, we should answer the…

Q: as a soybean buyer, you are concerned about soy prices. Currently, they are at $60 per bushel…

A: The spot price refers to the price used in the market for specified assets such as currency,…

Q: On November 21, you bought one December maturity S&P 500 index futures contract at the futures price…

A: The answer is as fallows

Q: On November 29, 2019 you bought one July 2020 maturity corn futures contract at a futures price of…

A: Futures Contract Price per Bushel = $3.90Spot Price per Bushel = $3.78Total Quantity (in Bushel) =…

Q: A trader enters into two short cotton futures contracts when the futures price is 80 cents per…

A: A trader enters into two short cotton futures contracts at a contracted price. The gain/loss for the…

Q: You have decided to purchase 25 oil futures contracts at a settle price of $55 per barrel. Each…

A: 1) Computation of Leverage Factor : Given data,                            Buy price = $55 per…

Q: Suppose that the 3-month futures price of corn is £2.00 (£2 per bushel). The cost-of-carry for this…

A: Here given that the 3 month future price of corn is £ 2. Also given the cost of carry for this…

Q: You enter into 10 short soybean futures contract (each contract is for 5000 bushel) for delivery of…

A: A short position in futures have been taken where the contracted price on three different grades of…

Q: A company enters into a short futures contract to sell 25,000 units of a commodity for 70 cents per…

A: Number of Unit = n = 25,000 unitsSelling price per unit = s = 70 cents or $0.70Initial Margin = im =…

Q: e. If the futures price continues to decline to $2.32, how much does the speculator have in the…

A: Future are traded in market to earn profit by hedging.

Q: A farmer sells futures contracts at a price of $3.65 per bushel. The spot price of corn is $3.15 at…

A: The futures contract refers to the derivative contracts in which two parties of the contract agree…

Q: You are a futures trader on Lean Hog at Kantar, New York. You have the following information on Lean…

A: Optimal hedge ratio is also known as the minimum variance hedge ratio, which states that the degree…

Q: Minetech Resources Berhad anticipates the need to purchase 80,000 bushels of soybeans in six months…

A: Future contract is used to hedge the position. For example, if future purchase has to be made, then…

Q: Suppose that you are a wheat farmer. Answer the following questions. It is August, and you intend to…

A: Wheat harvested in August50,000Future contract in August5,000Current spot market price in…

Q: a wheat trader who believes that the price of wheat will increase in the short-term. He takes a long…

A: A future contract is an agreement to buy or sell the underlying asset on a specified future date and…

Q: futures price is $820 per ounce. How many contracts do you need to purchase? How much will you pay…

A: Given that,To find the different entities using the given information.

Q: On Monday morning you sell one June T-bond futures contract at $97,843.75. The contract's face value…

A: As per the given information:Short position means sell futures without holding them, hoping for the…

Q: Assume you are a corn farmer, and you want to lock in a price for part of your upcoming harvest. You…

A: December future contracts = $7.10/Bu Anticipate basis = -$0.05/bu  Hedge price is the price which is…

Q: 5. On June, an investor bought five (10 tons per contract) of soybean futures at $3,000 per ton.…

A: The variation margin is the additional amount that a broker must pay to clearing houses to bring the…

Q: Given the following information for December 24 corn futures, identify the "In the Money", "At The…

A: Options in finance are derivative instruments that give the holder the right to buy or sell a…

Q: company enters into 2 long futures contracts on a commodity for 200 cents per unit. Each contract is…

A: When trading in the market there are margins required by the broker to keep positions in the market.

Q: Suppose trader A sells a E-miniS&P 500 indexDecember 2021 expiry (ESZ1)futures contract to trader…

A: Hi, since you have posted multiple question, we will answer the first one, as per the authoring…

Q: Blossom Inc. entered into a futures contract to sell grain for $1,120 in 30 days. This contract…

A: In accounting, a journal entry serves as a record of financial transactions and events. Every entry…

Q: Suppose that on September 05, 2021, a company takes a short position in one April 2022 live - cattle…

A: To calculate the settlement price at the end of the day, we need to determine the gain or loss on…