Suppose you purchase a May 2015 cocoa futures contract on 16 April 2015, at the last price
Question:
Suppose you purchase a May 2015 cocoa futures contract on 16 April 2015, at the last price of the day. What will your profit or loss be if the cocoa prices turn out to be $3,000 per metric ton at expiration? (Refer to Table 25.2 to help answer this question.)
Transcribed Image Text:
Table 25.2 Cocoa futures contract specification Description Symbol Contract Size Price Quotation Contract Listing Minimum Price Movement Settlement Daily Price Limit Deliverable Growths Delivery Points The Cocoa contract is the world benchmark for the global cocoa market. The contract prices the physical delivery of exchange-grade product from a variety of African, Asian and Central and South American origins to any of five US delivery ports. CC 10 metric tons $/metric ton March, May, July, September, December $1.00/metric ton, equivalent to $10.00 per contract Physical delivery None The growth of any country or clime, including new or yet unknown growths. Growths are divided into three classifications. Group A- Deliverable at a premium of $160/ton (including main crops of Ghana, Lom, Nigeria, Cte d'Ivoire and Sierra Leone). Group B-Deliverable at a premium of $80/ton (includes Bahia, Arriba, Venezuela, Sanchez, among others). Group C-Deliverable at par (includes Haiti, Malaysia and all others). Commencing with the July 2015 expiry, the growths of Peru and Colombia will be included in Group B. At licensed warehouses in the Port of New York District, Delaware River Port District, Port of Hampton Roads, Port of Albany or Port of Baltimore.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
Based on the information provided The cocoa futures contract I purchas...View the full answer
Answered By
Aravind T
I have passed +2 with 97% marks in 2017
Now i'm studying bsc physics in mar ivanios college trivandrum kerala
0.00
0 Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
Question Posted:
Students also viewed these Business questions
-
Refer to Table 25.2 in the text to answer this question. Suppose you purchase a March 2015 cocoa futures contract on January 8, 2015, at the last price of the day. What will your profit or loss be if...
-
Refer to Table 25.2 in the text to answer this question. Suppose you purchase a March 2021 cocoa futures contract on December 4, 2020, at the last price of the day. What will your profit or loss be...
-
Refer to Table 23.1 in the text to answer this question. Suppose you purchase a July 2014 cocoa futures contract this day, at the last price of the day. What will your profit or loss be if cocoa...
-
Create a class called Car that includes three instance variablesa model (type String), a year (type String), and a price (double). Provide a constructor that initializes the three instance variables....
-
Summarize the pay-for-performance and incentives case, and answer the following questions: a- Money as a Motivator. "Does money motivate? b- Designing an Incentive Plan. "Think of a job that you have...
-
John VanWyk owns VanWyks Tractor Shop in Bathurst. (In the Excel templates in MyLab Accounting, balances as of April 1 are provided for the accounts receivable and general ledger accounts.) In Johns...
-
Go the FASBs website at www.fasb.org. Click the tab for Standards, and then Concepts Statements. A. What does the FASB say is the purpose of the Concepts Statements? B. Are these Concepts Statements...
-
Plaintiff brings this cause of action against a manufacturer for the loss of one leg below the hip. The leg was lost when caught in the gears of a screw auger machine sold and installed by the...
-
Evaluate the integral by interpreting it in terms of areas: (2-|x) dx = (2-1)da
-
Consider the following partial derivatives. For a liquid, state whether the value is positive, negative, zero, close to zero, or you cannot tell. Explain your answer. (T); (F); (P); (@P), B. K P P T T
-
What is the cost of a new CAT Standard Scraper 631G? (You may be surprised by its cost!)
-
Rodger's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $660,000 and a contribution margin of 75% of revenues. Requirements 1. Compute Rodger's...
-
Coding versus Template Strands: The RNA genome of phage Qb is the nontemplate strand, or coding strand, and when introduced into the cell it functions as an mRNA. Suppose the RNA replicase of phage...
-
CO1 Differentiate between legality, morality, social responsibility and ethics - CO2 Analyze current ethical issues in business CO3 - Discuss issues surrounding ethical controversies in work groups,...
-
Wynn Farms reported a net operating loss of $185,000 for financial reporting and tax purposes in 2024. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynn's first...
-
Alison Arbitrage was hired fresh out of college by Debenture Option Warrant Co. ("DOW"), a securities trading firm. When Alison accepted the job, she signed a noncompetition agreement that barred her...
-
Trey Monson starts a merchandising business on December I and enters into the following three inventory purchases. Also, on December 15, Monson sells 15 units for $20 each. Purchases on December 7 10...
-
Richardson Systems sells integrated bottling manufacturing systems that involve a conveyer, a labeler, a filler, and a capper. All of this equipment is sold separately by other vendors, and the fair...
-
The following information is for Montreal Gloves Inc. for the year 2020: Manufacturing costs Number of gloves manufactured Beginning inventory $ 3,016,700 311,000 pairs 0 pairs Sales in 2020 were...
-
You are considering opening a new plant. The plant will cost $100 million upfront and will take one year to build. After that, it is expected to produce profits of $30 million at the end of every...
-
Bill Clinton reportedly was paid $10 million to write his book My Life. The book took three years to write. In the time he spent writing, Clinton could have been paid to make speeches. Given his...
-
Bill Clinton reportedly was paid $10 million to write his book My Life. The book took three years to write. In the time he spent writing, Clinton could have been paid to make speeches. Given his...
-
18 8 points On its income statement for the year ended 12/31/2022, Genshin Company reported bad debt expense of $5,000. On its balance sheet the company reported accounts receivable (Net) of 30,000,...
-
Exercise 10-19B Effective Interest: Amortization of bond premium LO P6 Quatro Co. issues bonds dated January 1, 2019, with a par value of $860,000. The bonds' annual contract rate is 10%, and...
-
QUESTION 1 Machinery was purchased 3 years ago for $542,000. Depreciation is calculated 15% and 25% straight-line for accounting purposes and tax purposes respectively. Calculate the Carrying Amount...
Study smarter with the SolutionInn App