You enter into 10 short soybean futures contract (each contract is for 5000 bushel) for delivery of # 2 Yellow at a contract price of $14.00/bushel. The delivery grades are #2 Yellow at contract price, #1 Yellow at a 6 cent/bushel premium, #3 Yellow at a 6 cent/bushel discount. On the day the contract expires, the spot prices for # 2 Yellow are $14.02 cents/bushel , # 1 Yellow are $14.08 cents/bushel and # 3 Yellow are # $13.93 /bushel. Which grade should you deliver if you want to maximize your profit and how much profit will you earn? O None of these O #1 for $1,000 profit O #3 for $3,500 profit O #3 for $500 profit O #1 for $4,000 profit

3. Consider the buyer of a FRA 6-9. The contract rate is 6.35% on a notional amount of $10 million. Calculate the settlement amount of the seller if the settlement rate is 6.85%. Assume a 30/360 day count basis.

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A farmer sells one corn futures contract at a price of $5.84 per bushel. The spot price of corn drops to $4.65 when the contract expires and the farmer delivers her corn. If the farmer harvested 24,000 bushels of corn and had futures contracts on 20,000 bushels of corn, what is the farmer's net proceeds when corn is sold?

Big Bucks leased equipment to Shannon Company on July 1, 2021. The lease payments were calculated to provide the lessor a 9% return. Ten annual lease payments of $39,000 are due each July 1, beginning July 1, 2021. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entries to record the lease by Shannon at July 1, 2021, and at December 31, 2021, the end of the reporting period. Consider this to be a finance lease. 2. Prepare the journal entries to record the lease by Shannon at July 1, 2021, and at December 31, 2021, the end of the reporting period. Consider this to be an operating lease. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries to record the lease by Shannon at July 1, 2021, and at December 31, 2021, the end of the reporting period. Consider this to be an operating lease. (If no entry is required for a…

Assume that we entered into a one-year forward contract with price $300 today. Nine months later, the observed price of the stock is $350 and the interest rate is 8% per annum. The value of the existing forward contract expiring in three months will be closest to: A. 49.05. B. 55.72. C. –55.72. D. −49.05.

Sally decides to buy a Treasury note futures contract for delivery of $100,000 face amount in December, at a price of 110'8.5. At the same time, Scott decides to sell a Treasury note futures contract if he can get a price of 110'8.5 or higher. The exchange, in turn, agrees to sell one Treasury note contract to Sally at 110ʻ8.5 and to buy one contract from Scott at 110ʻ8.5. The price of the Treasury note increases to 110'26.5. Calculate Sally's balance on margin account. Assume that initial margin is $1,890. Round the answer to two decimal places. Your Answer:

A marketing manager leases a car for 24 months after agreeing to a negotiated price of $44,250 and makes a down payment that is 20% of the negotiated price. Find the monthly lease payment (in dollars) if the money factor is 0.0026. Assume that the residual value is 52% of the MSRP of $48,900 and there is no trade-in. Round you answer to te nearest cent. $?

Assume that the price of December 2021 corn futures is $4.65/bushel in February and $4.50 in October. If spot cash price in October is $4.55, what is the farmer's total revenue? Assume he entered into 20 contracts. Each corn contract is 5000 bushels.