A trader entered into a long S&P index futures contract when the futures price is 2,591 and closed it out when the futures price is 2,704. What is his gain or loss in dollars? The contract multiplier is $250. Write your answer in the format as 10000 or -10000, no dollar sign, no comma.

What is the implied interest rate on a Treasury bond ($100,000) futures contract that settled at 100’160? If interest rates increased by 1%, what wouldbe the contract’s new value?

Using the forward price approach to finish the following blanks. The expected closing basis was -$.15. And the actual closing basis was -$0.25. Date 1-Oct Cash Cash Price $6.30 Futures May Futures $6.75 Cost of holding from Oct 1 to May 1 (including interest) = $0.21 What is the forward price? What is the break-even price? What is the expected profit margin? = 1-Oct 1-May Sell Cash @ $6.40 Sell May Futures @ $6.75 Buy May Futures @ ? What is the futures price on May 1? What is the gain or loss on futures market result? = What is the gain or loss on cash market result? = What is the realized price (or net selling price)? = What is the overall profit? = What is the break-even price?

Clarke plans to satisfy cash needs in nine months by selling its Treasury bond holdings for $4 million. However, Clarke is concerned that interest rates might increase over the next three months. To hedge against this possibility, Clarke plans to sell Treasury bond futures. Thus, Clarke sells futures contract for a price of 99-12. Assuming that the actual price of the futures contract declined to 97-20, Clarke would make a of $___. from closing out the futures position. a. b. C. d. e. -——— 40; profit; $76,800 40; loss; $76,800 50; profit; $70,000 40; profit; $70,000 none of the above

Suppose the quoted futures price for delivery in 1 year is $7.10. The current underlying price is $7 and the continuously compounded interest rate is 5%. The underlying does not pay dividends. How could you make a riskless arbitrage profit? Question 2Answer a. buy futures contracts, short sell the stock and invest in a bank account b. borrow from the bank to buy futures contracts and short sell the stock c. sell futures contracts, borrow and buy the stock d. sell future contacts, short sell the stock and invest in a bank account

Ignore Sammy. Another derivatives trader, John, took a long position in IRU9 on 04/07/2019 and held it until maturity. When the IRU9 matured in mid-September 2019, John closed his derivative long position and bought the 90-day Bank Bill at the 1% spot rate. What net rate of interest did he earn on his investment?     0.80%     1.00%     2.08%     1.08%

A non-dividend paying asset is current priced at $25 and the risk-free interest rate is 8% per annum. Today, you enter into a six-month futures contract to buy a unit of this asset. Three months from now the underlying price has fallen to $18 (but note that the interest rate has not moved). Which of the answers below is closest to the fall in the futures price? Use discrete discounting. Question 7Answer a. $6.50 b. $5.50 c. $7.50 d. $4.50

Today is January 1. The forward price for contracts maturing on April 1 is $104.4 and on October 1 is $111.6. On April 1, the price of a zero-coupon bond maturing on October 1 is $0.975. Assuming that the underlying interest rate is a continuously compounded interest rate and will not change, the amount of profit that you can make on October 1 by trading one contract each of the near and distant maturity forwards and other securities is: [round to two decimal places]

9) This is an exercise about financial futures. Can you please check the picture and answer the question? Only one option is right (A, B, C, or D).

You simultaneously write a put and buy a call, both with strike prices of $45, naked, i.e., without any position in the underlying stock. What are the expiration date payoffs to this position for stock prices of $35, $40, $45, $50, and $55? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) $ $ $ $ $ Stock price 35 40 45 50 55 Put payoff Call payoff Total payoff