Look at the futures listings for corn in Figure 2.11. Suppose you buy one contract for December 2020 delivery at the closing price. Required: If the contract closes in December at a price of $4.05 per bushel, what will be your profit or loss? (Each contract calls for delivery of 5,000 bushels.) (Round your answer to 2 decimal places.)
Look at the futures listings for corn in Figure 2.11. Suppose you buy one contract for December 2020 delivery at the closing price. Required: If the contract closes in December at a price of $4.05 per bushel, what will be your profit or loss? (Each contract calls for delivery of 5,000 bushels.) (Round your answer to 2 decimal places.)
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:Look at the futures listings for corn in Figure 2.11. Suppose you buy one contract for December 2020 delivery at the closing price.
Required:
If the contract closes in December at a price of $4.05 per bushel, what will be your profit or loss? (Each contract calls for delivery of
5,000 bushels.) (Round your answer to 2 decimal places.)
Transcribed Image Text:FIGURE 2.11 Corn futures prices on the Chicago Mercantile Exchange, September 4, 2019
Change High
Maturity
September-19
-4.7500
3.5100
December-19
-3.5000
3.6300
-3.2500
3.8400
-2.2500
4.0025
-2.0000
4.2000
Last
3.4500
3.5750
3.7925
3.9725
4.1875
May-20
December-20
July-21
Source: www.cmegroup.com, September 4, 2019.
Low
3.4450
3.5650
3.7850
3.9700
4.1825
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