Example• A farmer sells two soybean futures contracts at aprice of $8.91 per bushel. The spot price ofsoybean is $9.05 per bushel at contract expiration.The farmer harvested 14,000 bushels.• (1)What are the farmer's proceeds from the sale ofoats if the farmer sell 10,000 bushels with thefutures contracts and sell the rest in the spotmarket?• (2)What are the farmer's proceeds if the farmersells all the 14,000 bushels of oats in the spotmarket?

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

Answered: Example • A farmer sells two soybean…

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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Hedge May 20th: Producer plans to sell corn in early November. Currently the December corn futures are trading at $4.33. The expected basis is -$0.36. • Does the producer have a long or short cash position? long • To hedge: The producer will sell (buy/sell) Dec corn futures at $4.33/bu. • What is the expected price? $3.97 per bushel Nov. 10th: • The producer must sell (buy/sell) corn locally in the cash market at • . $4.18/bu. To offset their future position, they must buy $4.67/bu. What is the actual basis? -se.49 per bushel · (buy/sell) Dec futures at I What is the realized price for the producer? $3.84 per bushel о Method 1: o Method 2: о The hedge resulted in a realized price of
A farmer sells one corn futures contract at a price of $5.84 per bushel. The spot price of corn drops to $4.65 when the contract expires and the farmer delivers her corn. If the farmer harvested 24,000 bushels of corn and had futures contracts on 20,000 bushels of corn, what is the farmer's net proceeds when corn is sold?
The answers should be found on the following website; cmegroup . Find the recent quotes for soybean futures. What is the longest maturity for this contract? Is there more trading in the nearer or more distant contracts? Does it cost more to buy soybeans for delivery in the next few months or for later delivery? ( give deeply step wise explaination with type the answer.)
9
You purchased four September corn futures contracts at what turned out to be the lowest price of the day and sold those contracts at today's close. What is your total profit or loss on this investment? Contract Sep, Corn, 5,000 bu, cents/bu Sep, Wheat, 5,000 bu, cents/bu Multiple Choice -$2,875 $1,100 $14,250 -$287.50 Open High Low Close 615.50 618.25 608.00 613.50 814.00 820.00 808.50 811.00 X
Doctor Dumpkins is bullish on the British pound so he sells a one-month put for $0.03. The strike price of the call is $1.24. On the expiration day, the spot price of the British pound is $1.27. Calculate the break-even price, the option payoff at expiration, and the net profit at expiration.
Help me please
Assume that the price of December 2021 corn futures is $4.65/bushel in February and $4.50 in October. If spot cash price in October is $4.55, what is the farmer's total revenue? Assume he entered into 20 contracts. Each corn contract is 5000 bushels.

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