Suppose you sell six September 2020 palladium futures contracts this day at the lastprice of the day. Use Table 23.1.a. What will your profit or loss be if palladium prices turn out to be $2,034.50 per ounceat expiration? (Do not round intermediate calculations and enter your answer as apositive value rounded to 2 decimal places, e.g., 32.16.)b. What will your profit or loss be if palladium prices are $1,977.50 per ounce atexpiration? (Do not round intermediate calculations and enter your answer as apositive value rounded to the nearest whole number, e.g., 32.)a.Lossb.ProfitAnswer is not complete.6,200

Step 1:Number of contract = n = 6Quantity per contract = q = 50 troy ozStrike price = k =…

Answered: Suppose you sell six September 2020…

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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A farm that produces corn is looking to hedge their exposure to price fluctuations in the future. It is now May 15th and they expect their crop to be ready for harvest September 30th. You have gathered the following information: Bushels of corn they expect to produce 44,000 May 15th price per bushel $3.08 Sept 30 futures contract per bushel $3.22 Actual market price Sept 30 $3.37 Required (round to the nearest dollar): Calculate the gain or loss on the futures contract and net proceeds on the sale of the corn. Net gain or loss on future $Answer Sell the corn $Answer Net $Answer
M2
Please answer it with no descriptions or details, with the question numbers and answers, the exact way it should go on according to the red regulations, thank you!
R3
June 2021 Mexican peso futures contract has a price of $0.05197 per MXN. You believe the spot price in June will be $0.05831 per MXN. MXN500,000 is the contract size of one MXN contract. Required: What speculative position would you enter into to attempt to profit from your beliefs? Calculate your anticipated profits, assuming you take a position in three contracts. What is the size of your profit (loss) if the futures price is indeed an unbiased predictor of the future spot price and this price materializes?
A6)
am. 122.
If you put on the futures position from 2 at a price of 0.043 $/peso, and if the peso appreciates from the spot rate of 0.045 $/peso by 15% in the next 6 months, what will be the total value of your position (the payable plus the future) in 6 months (again, this should be a negative number)?
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).
Assume you buy a September corn put option with a strike price of $2.70 at a premium cost of 8 cents a bushel. Also, assume your local basis is expected to be 10 cents under September futures in August. What would your selling price be if the September futures price at expiration is 3.00? 2.92 2.82 2.98 3.28 2.52
This morning (Day 0) you take a short position in a pound futures contract that matures in 3 days (Day 3). The future price is $1.9750 today. The contract size is £62,500 and its initial performance bond and maintenance bond are $2,430 and $1,830, respectively. a. (b) Assuming that the daily settlement prices are indicated below, how would the daily change in settlement future prices affect your account? Show the daily gain/loss and account balance. Day 0 1 2 3 Settlement 1.9750 1.9700 1.9815 1.9907 Total Gain/Loss Account Balance b. During this period, did you receive a margin call? If you did, on what day? c. At the end of Day 3, how much in total did you make/lose on this futures contract?
June 2021 Mexican peso futures contract has a price of $0.05194 per MXN. You believe the spot price in June will be $0.04525 per MXN. Required: a. What speculative position would you enter into to attempt to profit from your beliefs? b. Calculate your anticipated profits, assuming you take a position in three contracts. c. What is the size of your profit (loss) if the futures price is indeed an unbiased predictor of the future spot price and this price materializes? Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate your anticipated profits, assuming you take a position in three contracts. Note: Do not round intermediate calculations. Round your answer to the nearest whole number. Anticipated profit

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