On January 1, you sold one February maturity S&P 500 Index futures contract at a futures price

Question:

On January 1, you sold one February maturity S&P 500 Index futures contract at a futures price of 3,000. If the futures price is 3,050 at contract maturity, what is your profit? The contract multiplier is $50.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

ISE Essentials Of Investments

ISBN: 9781265450090

12th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

See More Books

Question Posted: Nov 22, 2023 03:12 AM

See More Questions

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
What operational changes would you recommend to Wally to improve performance? Wally Meyer deftly balanced his office keys and a large printout of forecasting data as he wheeled his mountain bike...
The chief financial officer (CFO) of Baxter International has employed the use of hedges in a variety of contexts over the first quarter of the current calendar year as follows: Futures Contract The...
Samson Company manufactures embroidered jackets. The company uses a standard cost system to control manufacturing costs. The following data represent the standard unit cost of a jacket: Fixed...
On July 1, 2008 the Tuttle Company had bonds payable outstanding with a face value of $200,000 and a book value of $194,000. The interest on these bonds was paid on June 30. When these bonds were...
Lars Linken opened Lars Cleaners on March 1, 2022. During March, the following transactions were completed. Mar. 1 Issued 10,000 shares of common stock for $15,000 cash. 1 Borrowed $6,000 cash by...
Capital to total outside liabilities 4/7
Accounting for Patents during 2007, Thompson Corporation spent $170,000 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on...
You notice in the WSJ a bond that is currently selling in the market for $1,044 with a coupon of 11% and a(n) 25-year maturity. Using annual compounding, calculate the promised yield on this bond....
You can click the chart icon to find a plot of futures prices for several maturity dates. What would have been your profit if you had bought a (roughly) two-month maturity contract one month ago and...
Suppose that you want to create a spread position using S&P 500 futures contracts. Go to www.cmegroup.com and listed under Equity Index Products, select the E-Mini S&P 500 contract. Click on Contract...
You have been put in charge of a cross-functional task force that will develop enhanced Internet banking services for retail customers. The team includes representatives from marketing, information...
What a business can do to protect and minimize the invasion of privacy for their customers? Think of your experience when visiting a website. What do most websites have you agree to before you do...
Based on your interest, skill set, or goals what do you typically contribute when working in groups? What do you need others to contribute due to your lack of interest, skill set, or goals? How do...
Questions for scen ario one Why do you think you feel uncomfortable about this new situation? Could you have avoided this situation in the first place? What is the best course of action you can take?...
Draw a current state map of Ford Manufacturing (One family/ product/service flow). Give a brief explanation of the current state and the related issues with it. create your own action plan to show...
THE SHRM Learning system provides several motivation theories that increase engagement. Which of the motivation theories most aligns your real world experience as personally motivating you and why?...
Determine the number of integer solutions for x1 + x2 + x3 + x4 + x5 < 40, where (a) xi 0, 1 i 5 (b) xi - 3, 1 i 5
How do individual companies respond to economic forces throughout the globe? One way to explore this is to see how well rates of return for stock of individual companies can be explained by stock...
Use information from finance.yahoo.com to answer the following questions. a. What is Cokes current price? b. Now enter the ticker KO (for Coca-Cola) and find the AnalystOpinion tab. What is the mean...
Suppose you bet on volatility by purchasing calls instead of puts. How would you hedge your exposure to stock-price fluctuations? What is the hedge ratio?
In the table in Example 21.3, u and d both get closer to 1 (u is smaller and d is larger) as the time interval t shrinks. Why does this make sense? Does the fact that u and d are each closer to 1...
Apple inc cash flow
Assume todays settlement price on a CME EUR futures contract is $1.3142 per euro. You have a short position in one contract. EUR125,000 is the contract size of one EUR contract. Your performance bond...
WISE-HOLLAND CORPORATION On June 15, 2013, Marianne Wise and Dory Holland came to your office for an initial meeting. The primary purpose of the meeting was to discuss Wise-Holland Corporation's tax...

On January 1, you sold one February maturity S&P 500 Index futures contract at a futures price

Question:

Step by Step Answer:

To calculate the profit from the sale of the SP 500 ...View the full answer

ISE Essentials Of Investments

Students also viewed these Business questions