Hillary considers herself a shrewd commodities investor. She bought a May cotton contract (50,000 pounds) at $0.6709 a pound, and later sold it at $0.7484 a pound. What were her profit and her return on invested capital if her initial margin was $1,470 and the size of a cotton futures contract is 50,000 pounds of cottor
Hillary considers herself a shrewd commodities investor. She bought a May cotton contract (50,000 pounds) at $0.6709 a pound, and later sold it at $0.7484 a pound. What were her profit and her return on invested capital if her initial margin was $1,470 and the size of a cotton futures contract is 50,000 pounds of cottor
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
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Transcribed Image Text:considers herself a shrewd commodities investor. She bought a cotton contract (50,000 at $0.6709 a pound, and later sold it at $0.7484 a
pound. What were her profit and her return on invested capital if her initial margin was $1,470 and the size of a cotton futures contract is 50,000 pounds of cotton
Hillary's profit is $
(Round to the nearest dollar.)
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