48. In August 2022 a companytakes a short position in a contracton April 2023 platinum futures. Itcloses out its position in February2023. The futures price (per ounce)is $1444.20 when it enters thecontract, $1467.16 when it closesout its position, and $1458.13 at theend of December 2022. Onecontract is for the delivery of 1,500ounces platinum. What is thecompany's total gain or loss?

To calculate the company's total gain or loss from its short position in the platinum futures…

Answered: 48. In August 2022 a company takes a…

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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Consider the following prices, volume and open interest for gold futures contracts. Contract size: 100 oz Price units: $/oz (a) Which contract reached the highest price on this trading day? What was its contract value at that price? (b) Why is the high price equal to the low price for the contract expiring in October 2022?
Q3) Suppose that on November 15th, 2021 a company purchased ( i.e. long) one May 2022 live cattle futures contract. One contract is for the delivery of 40,000 pounds of cattle. It closed out its position on February 18th, 2022. The futures price ( per pound) was 135 cents when it entered into the contract, and 139 cents when it closed out its position. The futures price at the end of the year on December 31, 2021 was 136 cents. Assume the company has a Dec 31 year end for tax purposes. What is the total profit? How is it taxed if the company is (a) a hedger, and (b) a speculator ?
= An investor enters a short position in the S&P 500 E-mini futures contract that will expire in three months. The S&P 500 index currently trades at St $4,538.43. (As of 3-Dec-21.) Regarding contract specifications, the contract corresponds to 50 times the S&P 500 index. Additionally, the initial and maintenance margins are, respectively, $12,100 and $11,000. Finally, the futures contract is currently trading at Fț(T) = $4,531.25 (actual settlement price for the Mar-22 contract on 3-Dec-21). Given this information, address the following two questions. 12. Suppose that the annual dividend yield is q = 2%, what is the implied annual risk-free rate r? (a) -0.012 (b) 0.012 (c) 0.014 (d) -0.0370 12
13. The FTSE100 on August 1, 2021 trades at 6250 points. The 6-month UK T-bill rate (in discrete compounding) is 0.50% and the futures price on FTSE100 for a contract with February 2021 delivery is equal to 6179.29 points. Determine the dividend yield (annual basis, discrete compounding) on the FTSE100 which is implied by the market futures price.
On the 1st of March, a commodity’s spot price is $60 and its futures contract price with maturity in August is $59. On the 1st of July, the commodity spot price is $64 and its futures contract price with maturity in August is $63.50. A company entered into the futures contracts on 1st of March to hedge its purchase of the commodity on July 1. It closed out its position on July 1. What is the effective price (after taking account of hedging) paid by the company? $60.50 $61.50 $63.50 $59.50
Manshukh
On January 1, 2020, Oriole Inc. entered into a futures contract to purchase U.S. $5,390 for $5,670 Canadian in 30 days on the Futures Exchange. On January 15, the fair value of the contract was $39 (reflecting the present value of the future cash flows under the contract). Oriole Inc. was required to deposit $22 with the stockbroker as a margin. Prepare the journal entries to update the books on January 1 and 15. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
You placed $120,000 in your future trading account have just bought your first HSI June 2023 futures contract today @ 19,652, at market close the HSI June 2023 future closed at 19,534. Currently the initial margin for HSI is $101,944, the maintenance margin is $81,555. HSI futures is $50 per index point. What is you margin account balance as of market closed today? Please write out the detailed calculation steps
Choose the correct answer: O The trader gains $10,000. The trader loses $15,000. The trader gains $5,000. The trader loses $10,000. The trader loses $5,000.
It is now January. The current annual interest rate is 6.4%. The June futures price for gold is $1485.80, while the December futures price is $1,494. Assume the June contract expires in exactly 6 months and the December contract expires in exactly 12 months. Required: a. Calculate the appropriate price for December futures using the parity relationship? (Do not round intermediate calculations. Round your answer to 2 decimal places.) x Answer is complete but not entirely correct. $ 1,529.86 Price for December futures
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Consider the following prices, volume and open interest for gold futures contracts. Contract size: 100 oz Price units: $/oz (a) What was the value of the contract that expires in February 2022 when the market closed? (b) Which futures contracts had a higher settle price on the previous trading day? (c) Would a speculator prefer to go short at the daily high price or the daily low price?

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